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Social Comparisons in Real Time: A Field Experiment of Residential Electricity and Water Use

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  • Andrius Kažukauskas
  • Thomas Broberg
  • Jūratė Jaraitė

Abstract

In this paper, we carry out a field experiment that contributes in two important ways to the literature on how social comparisons affect residential energy and water use. First, we study a social comparison treatment that is continuous and communicated via pre‐installed in‐home displays, which are salient and updated in real time. Second, we estimate the effects of provision of social comparisons on two different resources – electricity and water – in the same experimental setting. We find that, on average, our social comparison reduces daily residential energy consumption by 6.7 percent but has no effect on overall residential water use.

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  • Andrius Kažukauskas & Thomas Broberg & Jūratė Jaraitė, 2021. "Social Comparisons in Real Time: A Field Experiment of Residential Electricity and Water Use," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 558-592, April.
    • Handle: RePEc:bla:scandj:v:123:y:2021:i:2:p:558-592
    DOI: 10.1111/sjoe.12422
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    1. Samuel Narh Dorhetso, 2024. "A review of fifty-six years of consumer economics research," SN Business & Economics, Springer, vol. 4(11), pages 1-27, November.
    2. Antonia Grohmann & Melanie Koch, 2022. "The Effect of Social Comparison on Debt Taking: Experimental Evidence," Discussion Papers of DIW Berlin 1996, DIW Berlin, German Institute for Economic Research.
    3. Belaïd, Fateh & Flambard, Véronique, 2023. "Boosting buildings energy efficiency: The impact of social norms and motivational feedback," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 26-39.
    4. Jakob Enlund & David Andersson & Fredrik Carlsson, 2023. "Individual Carbon Footprint Reduction: Evidence from Pro-environmental Users of a Carbon Calculator," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 433-467, November.
    5. Stefano Clò & Tommaso Reggiani & Sabrina Ruberto, 2024. "Consumption Feedback and Water Saving: A Field Intervention Evaluation in the Metropolitan Area of Milan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2259-2308, September.
    6. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy demand management and social norms – the case study in Poland," Working Papers 2020-25, Faculty of Economic Sciences, University of Warsaw.
    7. Hernández, Francisco & Jaime, Marcela & Vásquez, Felipe, 2024. "Nudges versus prices: Lessons and challenges from a water-savings program," Energy Economics, Elsevier, vol. 134(C).
    8. Schleich, Joachim & Alsheimer, Sven, 2024. "The relationship between willingness to pay and carbon footprint knowledge: Are individuals willing to pay more to offset their carbon footprint if they learn about its size and distance to the 1.5 °C," Ecological Economics, Elsevier, vol. 219(C).
    9. Liu, Gengyuan & Du, Shupan & Gao, Yuan & Xiong, Xiaoping & Lombardi, Ginevra Virginia & Meng, Fanxin & Chen, Yu & Chen, Caocao, 2024. "A study on energy-water-food-carbon nexus in typical Chinese northern rural households," Energy Policy, Elsevier, vol. 188(C).
    10. Giorgos Meramveliotakis & Manolis Manioudis, 2024. "Default Nudge and Street Lightning Conservation: Towards a Policy Proposal for the Current Energy Crisis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9228-9237, June.
    11. Gołębiowska, Bernadeta & Bartczak, Anna & Budziński, Wiktor, 2021. "Impact of social comparison on preferences for Demand Side Management in Poland," Energy Policy, Elsevier, vol. 149(C).
    12. Erik Ansink & Carmine Ornaghi & Mirco Tonin, 2021. "Technology vs information to promote conservation: Evidence from water audits," Tinbergen Institute Discussion Papers 21-014/VIII, Tinbergen Institute.
    13. Ruth Shortall & Anna Mengolini & Flavia Gangale, 2022. "Citizen Engagement in EU Collective Action Energy Projects," Sustainability, MDPI, vol. 14(10), pages 1-24, May.
    14. Stefano Clò & Tommaso Reggiani & Sabrina Ruberto, 2023. "Consumption feedback and water saving: An experiment in the metropolitan area of Milan," MUNI ECON Working Papers 2023-02, Masaryk University, revised Aug 2024.
    15. Brandsma, Jeroen S. & Blasch, Julia E., 2019. "One for all? – The impact of different types of energy feedback and goal setting on individuals’ motivation to conserve electricity," Energy Policy, Elsevier, vol. 135(C).
    16. Bernadeta Gołębiowska & Anna Bartczak & Wiktor Budziński, 2019. "Impact of social comparison on DSM in Poland," Working Papers 2019-10, Faculty of Economic Sciences, University of Warsaw.
    17. Pratik Mochi & Kartik Pandya & Joao Soares & Zita Vale, 2023. "Optimizing Power Exchange Cost Considering Behavioral Intervention in Local Energy Community," Mathematics, MDPI, vol. 11(10), pages 1-15, May.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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