Modifying Energy Rating Labels to Increase the Uptake of Energy-Efficient Products
Arcadia Social Research was commissioned by government agencies in Australia and New Zealand to investigate how the Energy Rating Label could be improved to better communicate the energy efficiency, cost savings, and environmental benefits of appliances.
Context
In response to concerns about domestic energy consumption, the two agencies commissioned 3arc Social to explore ways that the Energy Rating Label (ERL) could be enhanced to better inform consumers about energy use and encourage them to choose more energy efficient products.
Approach
Our team devised a multi-stage research programme, beginning with a scoping phase to establish a strategic framework and theory of change. Drawing on international literature and best practice, we produced a series of prototype labels. We then conducted qualitative research, through focus groups and one-to-one interviews with consumers in both countries, to understand how the existing label is perceived, what information is most useful and where confusion arises. Insights from these discussions informed a refined set of designs, which were then tested in a controlled online choice experiment with representative samples across Australia and New Zealand.
Result
The study confirmed that while consumers readily recognise the current ERL, most focus solely on the star rating and often overlook technical details. The revised label formats led to a marked improvement in the selection of higher-efficiency products and a reduction in choices of lower-rated appliances.
By showing that a more informative and user-friendly label can shift purchasing decisions, the research provides a clear pathway for nudging households towards greener appliances. Coupled with targeted education campaigns and incentives, the enhanced ERL has the potential to deliver meaningful reductions in energy consumption and greenhouse gas emissions, while also delivering cost savings to consumers and advancing broader sustainability objectives across Australasia.
Social & Policy Area
Methods
Qualitative
Quantative
Note
This project was completed when operating as 3arc Social.