Poster #101 - Shift Happens: Consumers' Perceptions, Acceptance, and Valuation of Carbon Labeling in Energy Policy

• In Event: Saturday Poster Luncheon

Abstract

Climate change and environmental sustainability remain pressing global challenges, with electricity generation contributing roughly 40% of global CO₂ emissions from fossil fuels. As utilities move toward decarbonization, strategies like carbon labeling, which provides real-time information on the pollution intensity of electricity, are gaining traction. This study explores American consumers’ perceptions of carbon labeling and their behavioral intentions to shift electricity use based on pollution-related signals.

Anchored in the Theory of Planned Behavior (TPB) (Ajzen, 1991) and extended with constructs from environmental psychology (Yadav & Pathak, 2016), this research hypothesizes that attitudes, subjective norms, and perceived behavioral control positively predict intention to shift usage, while environmental concern and knowledge influence both attitudes and intent. Survey data (N = 487) were collected via CloudResearch from a nationally diverse U.S. sample and analyzed using structural equation modeling (SEM).

This paper makes two key contributions. First, it assesses consumer valuation of pollution-related information in electricity decisions. Second, it applies and extends TPB to the temporal dimension of energy behavior, a novel context for real-time environmental cues. By incorporating concern and knowledge, the model captures both what people care about and what they comprehend, which is critical for effective carbon labeling design. 

Preliminary findings show that attitudes and social norms are strong, significant predictors of behavioral intentions, while environmental knowledge and concern shape attitudes. These results underscore the potential for carbon labeling to serve as a behavioral nudge, especially when paired with accessible, actionable information. For policymakers and utilities, the implications are clear: carbon labels alone are not enough. Empowering consumers through education and intuitive design is essential for demand-side decarbonization strategies to succeed.

References:
Ajzen, I. (1991). The Theory of planned behavior. Organizational Behavior and Human Decision Processes. https://doi.org/10.4135/9781446249215.n22
Yadav, R., & Pathak, G. S. (2016). Young consumers' intention towards buying green products in a developing nation: Extending the theory of planned behavior. Journal of cleaner production, 135, 732-739.
https://doi.org/10.1016/j.jclepro.2016.06.120

Author

• Alexi Morgan Barrett, University of North Carolina, Charlotte
  Presenting Author