Consumer preferences and willingness to pay for compact fluorescent lighting: Policy implications for energy efficiency promotion in Saint Lucia

This article examines consumer willingness to pay for energy‐saving compact fluorescent light bulbs using the results of a stated preferences study conducted in the Caribbean island nation of Saint Lucia. Geographic location, low income status, and age are found to affect willingness‐to‐pay for compact fluorescent lighting, while higher income status and other demographic variables appear to have minimal or no significant impacts. Energy efficiency knowledge is associated with increased willingness‐to‐pay for energy‐efficient bulbs and with increased use of compact fluorescent lighting. Contrary to theoretical expectations, past purchase of compact fluorescent bulbs is found to have no impact on self‐reported willingness to pay. We hypothesize that this null result is due to the recent emergence of low‐cost, low‐quality compact fluorescent bulbs in the Saint Lucian lighting market, which may be negatively influencing consumers' preferences and expectations regarding energy‐efficient lighting. Findings support the argument that government‐sponsored education and subsidy programs will likely result in increased use of energy‐saving technologies in Saint Lucia. But such behavioral changes may not be sustained in the long run unless low quality bulbs – the ‘lemons’ of the compact fluorescent lighting market – can be clearly identified by consumers.