Does energy efficiency affect appliance prices? Empirical analysis of air conditioners in China based on propensity score matching

With continuous increases in global eenergy consumption, environmental problems are becoming more prominent. Encouraging consumers to purchase and use energy-saving appliances can effectively reduce energy consumption. Do consumers have a different willingness to pay (WTP) or different preferences for appliance attributes when making purchasing decisions? Energy-efficiency labels provide consumers with energy-consumption information. Do such labels have an effect on appliance prices? To answer these questions, this study used the hedonic price model (HPM) to explore consumers' WTP for various attributes of air conditioners (ACs). Sales data for 1459 ACs were obtained from a major e-commerce platform in China. The results indicated that platform attributes had no significant effect on price. While the premium of energy-efficiency labeling was 12.4%, brands had a high premium—up to 59.4%. Meanwhile, propensity score matching (PSM) was used to explore the premiums of energy-efficiency labeling; PSM can solve the problem of selection bias and has advantages over traditional HPM. The results showed that there was a 19.4% premium between energy-efficiency level 1 and level 2 and a 21.5% premium between levels 1 and 3. Based on the results, management suggestions are made to further promote the development of the household appliance market and energy-efficiency labeling.