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The Effect of Feedback by Text Message (SMS) and Email on Household Electricity Consumption: Experimental Evidence

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  • Maria Gleerup
  • Anders Larsen
  • Soren Leth-Petersen
  • Mikael Togeby

Abstract

This paper analyzes the effect of supplying feedback by text messages (SMS) and email about electricity consumption on the level of total household electricity consumption. An experiment was conducted in which 1,452 households were randomly allocated to three experimental groups and two control groups. Feedback was supplied throughout 2007 to members of the experiment groups who accepted the invitation, and data on consumption of electricity for 2006 and 2007 collected for all participants and control group members. 30% of the households invited to receive feedback accepted the invitation. Results suggest that email and SMS messaging that communicated timely information about a householdÕs ÔexceptionalÕ consumption periods (e.g. highest week of electricity use in past quarter) produced average reductions in total annual electricity use of about 3%. The feedback technology is cheap to implement and therefore likely to be cost-effective.

Suggested Citation

  • Maria Gleerup & Anders Larsen & Soren Leth-Petersen & Mikael Togeby, 2010. "The Effect of Feedback by Text Message (SMS) and Email on Household Electricity Consumption: Experimental Evidence," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 113-132.
    • Handle: RePEc:aen:journl:2010v31-03-a06
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    Cited by:

    1. Schleich, Joachim & Gassmann, Xavier & Faure, Corinne & Meissner, Thomas, 2016. "Making the implicit explicit: A look inside the implicit discount rate," Energy Policy, Elsevier, vol. 97(C), pages 321-331.
    2. Iwafune, Yumiko & Mori, Yuko & Kawai, Toshiaki & Yagita, Yoshie, 2017. "Energy-saving effect of automatic home energy report utilizing home energy management system data in Japan," Energy, Elsevier, vol. 125(C), pages 382-392.
    3. Nicolas Astier, 2016. "Comparative Feedbacks under Incomplete Information," Working Papers hal-01465189, HAL.
    4. Du, Limin & Guo, Jin & Wei, Chu, 2017. "Impact of information feedback on residential electricity demand in China," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 324-334.
    5. Ramos, A. & Gago, A. & Labandeira, X. & Linares, P., 2015. "The role of information for energy efficiency in the residential sector," Energy Economics, Elsevier, vol. 52(S1), pages 17-29.
    6. Rosenkranz, Stephanie & Vringer, Kees & Dirkmaat, Thomas & van den Broek, Eva & Abeelen, Christiaan & Travaille, Anjo, 2017. "Using behavioral insights to make firms more energy efficient: A field experiment on the effects of improved communication," Energy Policy, Elsevier, vol. 108(C), pages 184-193.
    7. Schleich, Joachim & Klobasa, Marian & Gölz, Sebastian & Brunner, Marc, 2013. "Effects of feedback on residential electricity demand—Findings from a field trial in Austria," Energy Policy, Elsevier, vol. 61(C), pages 1097-1106.
    8. Valeria Di Cosmo, Sean Lyons, and Anne Nolan, 2014. "Estimating the Impact of Time-of-Use Pricing on Irish Electricity Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    9. Maya Papineau & Nicholas Rivers, "undated". "Visualizing Energy Efficiency: A Picture is Worth More Than 1,022 Words," Carleton Economic Papers 19-10, Carleton University, Department of Economics.
    10. Schleich, Joachim & Faure, Corinne & Klobasa, Marian, 2017. "Persistence of the effects of providing feedback alongside smart metering devices on household electricity demand," Energy Policy, Elsevier, vol. 107(C), pages 225-233.
    11. Penelope Buckley, 2020. "Prices, information and nudges for residential electricity conservation : A meta-analysis," Post-Print hal-02500507, HAL.
    12. Yu, Yihua & Guo, Jin, 2016. "Identifying electricity-saving potential in rural China: Empirical evidence from a household survey," Energy Policy, Elsevier, vol. 94(C), pages 1-9.
    13. Paolo Zangheri & Tiago Serrenho & Paolo Bertoldi, 2019. "Energy Savings from Feedback Systems: A Meta-Studies’ Review," Energies, MDPI, vol. 12(19), pages 1-18, October.
    14. Ruokamo, Enni & Meriläinen, Teemu & Karhinen, Santtu & Räihä, Jouni & Suur-Uski, Päivi & Timonen, Leila & Svento, Rauli, 2022. "The effect of information nudges on energy saving: Observations from a randomized field experiment in Finland," Energy Policy, Elsevier, vol. 161(C).
    15. Niels Framroze Møller & Laura Mørch Andersen & Lars Gårn Hansen & Carsten Lynge Jensen, 2018. "Can pecuniary and environmental incentives via SMS messaging make households adjust their intra-day electricity demand to a fluctuating production?," IFRO Working Paper 2018/06, University of Copenhagen, Department of Food and Resource Economics.
    16. Olmos, Luis & Ruester, Sophia & Liong, Siok-Jen & Glachant, Jean-Michel, 2011. "Energy efficiency actions related to the rollout of smart meters for small consumers, application to the Austrian system," Energy, Elsevier, vol. 36(7), pages 4396-4409.
    17. Møller, Niels Framroze & Andersen, Laura Mørch & Hansen, Lars Gårn & Jensen, Carsten Lynge, 2019. "Can pecuniary and environmental incentives via SMS messaging make households adjust their electricity demand to a fluctuating production?," Energy Economics, Elsevier, vol. 80(C), pages 1050-1058.
    18. Carsten Lynge Jensen, Lars Garn Hansen, Troels Fjordbak, and Erik Gudbjerg, 2012. "Providing Free Autopoweroff Plugs: Measuring the Effect on Households' Electricity Consumption through a Field Experiment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    19. Buckley, Penelope, 2020. "Prices, information and nudges for residential electricity conservation: A meta-analysis," Ecological Economics, Elsevier, vol. 172(C).
    20. Blum, Bianca & Hübner, Julian & Berger, Harald & Neumärker, Karl Justus Bernhard, 2018. "Libertarian paternalistic instruments fostering sustainable energy consumption: An analysis based on energy-efficient LED technology," The Constitutional Economics Network Working Papers 03-2018, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    21. Schleich, Joachim & Klobasa, Marian & Brunner, Marc & Gölz, Sebastian & Götz, Konrad, 2011. "Smart metering in Germany and Austria: Results of providing feedback information in a field trial," Working Papers "Sustainability and Innovation" S6/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
    22. Asmare, Fissha & Jaraitė, Jūratė & Kažukauskas, Andrius, 2021. "The effect of descriptive information provision on electricity consumption: Experimental evidence from Lithuania," Energy Economics, Elsevier, vol. 104(C).

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    JEL classification:

    • F0 - International Economics - - General

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