Consumer Willingness to Pay for Energy Efficient Refrigerators in Nairobi City County, Kenya
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Date
2024-09
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Kenyatta University
Abstract
Consumer choices in purchasing energy-efficient refrigerators can significantly
contribute to energy efficiency and environmental conservation in Kenya. This study
investigated consumer choices related to purchasing energy-efficient refrigerators as
a means to enhance energy efficiency and environmental conservation in Kenya. The
research was guided by three objectives: (1) to assess the impact of the Kenya
energy-star rating label on consumers’ willingness to pay for refrigerators in Nairobi,
(2) to evaluate the influence of factors such as refrigerator price, capacity, technical
design, and consumer demographics on their willingness to pay for energy-rated
refrigerators, and (3) to determine the effect of consumers’ self-rated environmental
concern and preference for energy-saving appliances on their willingness to pay for
energy-star-rated refrigerators. Data were collected from a sample of 399 households
across five constituencies in Nairobi County, representing middle-income and upper middle-income regions. Stratified random sampling was employed to select
respondents. The data were analyzed using four logit models: a basic conditional
logit, an extended conditional logit, a mixed logit, and an extended mixed logit
model. Findings indicated that consumers were willing to pay an additional 24,000 to
32,000 Kenya shillings for energy-efficient refrigerators. A statistically significant
relationship was found between consumer preference for energy-saving appliances
and the likelihood of purchasing energy-efficient refrigerators (p = 0.045 for the
extended conditional logit and p = 0.041 for the extended mixed logit). However, no
significant relationship was observed between consumer environmental concern and
willingness to pay for energy-efficient refrigerators. Additionally, household size,
income, awareness of energy labels, age, and household energy bills did not
significantly affect willingness to pay for these appliances. The study concluded that
the Kenyan energy-star rating label significantly influenced the adoption of energy efficient refrigerators, with policy implications for enhancing energy-star ratings and
consumer education on energy efficiency and eco-labeling
Description
A Research Thesis Submitted in Partial Fulfillment of the Requirement for the Award of The Degree Of Masters In Environmental Science In The School Of Agriculture And Environmental Science Of Kenyatta University September 2024
Supervisor:
1. Ezekiel Ndunda
2.Gathu Kirubi