Consumer Willingness to Pay for Energy Efficient Refrigerators in Nairobi City County, Kenya

Wahome Alvin Kabingu *

Department of Environmental Sciences and Education, Kenyatta University, Kenya.

Ezekiel Ndunda

Department of Environmental Sciences and Education, Kenyatta University, Kenya.

Gathu Kirubi

Department of Environmental Sciences and Education, Kenyatta University, Kenya.

*Author to whom correspondence should be addressed.


In Kenya, consumer choices regarding home energy appliances, such as refrigerators, are crucial for enhancing energy efficiency and environmental conservation efforts. This study examined the influence of the Kenya Energy Star Rating Label on consumer preferences for refrigerators. Using stratified random sampling, 330 respondents from five constituencies in Nairobi County, Kenya, were surveyed. The research employed a combination of conditional and mixed logit models to analyse the data. The results revealed a significant positive correlation (P = .05) between the Kenyan Energy Star Rating label and consumer preference for energy-efficient refrigerators across all models. Consumers demonstrated a willingness to pay an average premium of 28,708.5 Kenyan shillings for refrigerators displaying the Kenyan Energy Star Rating label, indicating their recognition of the label's value. There was no significant relationship between consumer environmental concern and their willingness to pay for energy labelled refrigerators. These findings have notable policy implications, emphasizing the importance of educating Kenyan consumers about the environmental advantages of energy-efficient appliances. Specifically, the results underscore the effectiveness of the Kenyan Energy Star Rating Label in guiding consumer choices toward more sustainable appliance options.

Keywords: Consumer willingness to pay, discrete choices, energy-efficiency, environmental concern, household appliance efficiency

How to Cite

Kabingu , W. A., Ndunda , E., & Kirubi, G. (2023). Consumer Willingness to Pay for Energy Efficient Refrigerators in Nairobi City County, Kenya. Journal of Geography, Environment and Earth Science International, 27(11), 1–10.


Download data is not yet available.


IEA. Africa energy outlook. Paris: IEA; 2022.

IEA. Energy efficiency. Paris: International Energy Agency; 2019.

Fowlie M, Meeks R. The economics of energy efficiency in developing countries. Review of Environmental Economics and Policy. 2021;238-260.

Government of Kenya. Kenya national energy efficiency and conservation strategy. Nairobi: Government of Kenya: Ministry of Energy; 2020.

Bennich P, Siderius HP, Ellis M, Waide P, Harrington L, Brocklehurst F. Global assessment of appliance energy efficiency standards and labelling programs achievements. ACEEE Summer Study on Energy Efficiency in Buildings. 2022;251-266.

Pollitt Michael G, Irina Shaorshadze. The role of behavioral economics in energy and climate policy. Handbook on energy and climate change. 2013;523-546.

European environmental agency. Achieving energy efficiency through behaviour change: what does it take? Luxembourg: Publications Office of the European Union; 2013.

Abbotts A. Energy efficiency is key to climate action; 2019. Available:

USAID. Energy-efficiency opportunities In Sub-Saharan Africa scaling up renewable energy (SURE). USAID; 2022.

Murshed M, Khan S, Rahman A. Roadmap for achieving energy sustainability in Sub-Saharan Africa: The mediating role of energy use efficiency. Energy Reports. 2022;4535-4552.

EPRA. Embracing energy efficiency for growth: How institutions are reducing expenses through energy efficiency. Nairobi: EPRA; 2020.

Revelt D, Train K. Mixed logit with repeated choices: Households’ choices of appliance efficiency level. Review of Economics and Statistics. 1998;647-657.

Moxnes Erling. Estimating customer utility of energy efficiency standards for refrigerators. Journal of Economic Psychology. 2004;707-724.

Ward D, Clark C, Jensen K, Yen S, Russell C. Factors influencing willingness-to-pay for the Energy Star® label. Energy Policy. 2011;39:1450-1458.

Sammer K, Wustenhagen R. The Influence of eco-labelling on consumer behaviour - Results of a discrete choice analysis for washing machines. Business strategy and the environment. 2006;15: 185-199.

Shen J, Saijo T. Does an energy efficiency label alter consumer purchasing decision? a latent class approach based on a stated choice experiment in shangai. Journal of Environmental Management. 2009;(90):3561-3573.

Wang X, Li W, Song J, Duan H, Fang K, Diao W. Urban consumers’ willingness to pay for higher-level energy-saving appliances: Focusing on a less developed region. Resource, Conservation and recycling. 2020;157.

Albayrak T, Aksoy S, Caber M. The effect of environmental concern and scepticism on green purchase behaviour. Marketing Intellingence & Planning. 2013;31(1):27-39.

Chen MF, Tung PJ. Developing an extended Theory of Planned Behavior model to predict consumers’ intention to visit green hotels. International Journal of Hospitality Management. 2014;36:221-230.

Chan ES, Hon AH, Chan W. An empirical study of environmental practices and employee ecological behavior in the hotel industry. Journal of Hospitality & Tourism Research. 2014;1-24.

Bamberg S. How does environmental concern influence specific environmentally related behaviors? A new answer to an old question. Journal of Environmental Psychology. 2003;21-32.

Urban J, Scasny M. Exploring domestic energy-saving: The role of environmental concern and background variables. Energy Policy. 2012;69-80.

Ramayah T, Wai Chow Lee J, Mohamad O. Green product purchase intention: Some insights from a developing country. Resource Conservation and Recycling. 2010;54(12):1419-1427.

Tan CS, Ooi HY, Goh YN. A moral extension of the theory of planned behavior to predict consumers’ purchase intention for energy-efficient household appliances in Malaysia. Energy Policy. 2017;107:459-471.

Boucher Lauren, Asif Hassan, Elisa Lai, Riley Macdonald, Michael Maina, Michael Spiak, William Jamieson, Andrew Tod.. Appliance data trends: Insights on energy; 2021.

Ndunda EN, Mungatana ED. Evaluating the welfare effects of improved wastewater treatment using a discrete choice experiment. Journal of Environmental Management. 2013;49-57.

Hoyos D. The state of the art of environmental valuation with discrete choice experiments. Ecological Economics. 2010;1595–1603.

Lancaster K. A new approach to consumer theory. Journal of Political Economy. 1996;74(132).

McFadden D. Conditional logit analysis of qualitative choice. In P. Zarembka (Ed.), Frontiers in econometrics. New York, USA: Academic Press. 1973;105-142.

Train KE. Discrete choice methods with simulation. Cambridge: Cambridge University Press; 2003.

Li X. Consumer willingness t consumer willingness to pay for eco-labeled refrigerators. Trace: Tennesse Research and Creative Exchange; 2011.

Asinyaka M. Willingness to Pay for energy efficient refrigerating appliances in Accra, Ghana: A choice experiment approach. Review of Economics. 2019;70(2):15-39.

Hole AR. WTP: Stata module to estimate confidence intervals for willingness to pay measures. Statistical Software Components S456808, Boston College Department of Economics; 2007.

Mohammed Emad, Christopher Naugler, Behrouz Far. Chapter 32 - Emerging business intelligence framework for a clinical laboratory through big data analytics. In emerging trends in computational biology, Bioinformatics, and systems biology, edited by Quoc Nam and Hamid Arabnia. Morgan Kaufmann. 2015;577-602.

Akaike H. A new look at the statistical model identification. IEEE Transactions on Automatic Control. 1974;19(6):716-723.

Claeskens Gerda, Marteen Jansen. Model selection and model averaging. International Encyclopedia of the Social & Behavioral Sciences (Second Edition). 2015;647-652.