The potential effect of a Type I environmental label varied significantly across individuals with different levels of education or environmental involvement. Further, the effect of the Type I label seems to depend on the type of other information available to the individual. Finally, the results suggest that consumers are willing to pay a premium for electricity services that feature lower ambient air emissions, and that this willingness to pay differs significantly across consumers. In general, consumers seem more concerned with the overall cleanliness of electricity, measured in terms of reduced air emissions, rather than the fuels used in electricity production. Although less important to some, fuel mix does influence the choices of some consumers.
Some consumers are willing to pay more for renewable content if it replaces the fossil fuels.
Russell M. Consumer preferences for environmentally preferred electricity. Submitted for presentation at the International Life Cycle Assessment Conference. The research results have also been reported in several news venues. During June 1999, the American News Service featured the research in a news release.