IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v145y2020ics0301421520304857.html
   My bibliography  Save this article

Motivating non-ratepaying households with feedback and social nudges: A cautionary tale

Author

Listed:
  • Crago, Christine L.
  • Spraggon, John M.
  • Hunter, Elizabeth

Abstract

Behavioral interventions have been shown to be valuable instruments in reducing energy use among ratepaying customers, but their effect on non-ratepayers has received less attention. This study uses a randomized controlled trial research design to examine the effect of feedback and a social nudge in the form of peer comparison on energy consumption of non-ratepaying households. The study setting is a university family housing complex, and findings are based on hourly observations of energy use by 62 households over thirteen weeks. Our results suggest that neither feedback or peer comparison is an effective instrument to reduce energy use of non-ratepaying households, and may even increase energy consumption in some contexts. We find heterogeneous effects among households that are low and high users of energy in the pre-treatment period, with high users increasing energy consumption in response to feedback. Thus, caution is needed in applying behavioral interventions when financial incentives to reinforce intended effects are absent.

Suggested Citation

  • Crago, Christine L. & Spraggon, John M. & Hunter, Elizabeth, 2020. "Motivating non-ratepaying households with feedback and social nudges: A cautionary tale," Energy Policy, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:enepol:v:145:y:2020:i:c:s0301421520304857
    DOI: 10.1016/j.enpol.2020.111764
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520304857
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111764?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Levinson, Arik & Niemann, Scott, 2004. "Energy use by apartment tenants when landlords pay for utilities," Resource and Energy Economics, Elsevier, vol. 26(1), pages 51-75, March.
    2. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 61, pages 3895-3962, Elsevier.
    3. Kendel, Adnane & Lazaric, Nathalie & Maréchal, Kevin, 2017. "What do people ‘learn by looking’ at direct feedback on their energy consumption? Results of a field study in Southern France," Energy Policy, Elsevier, vol. 108(C), pages 593-605.
    4. 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).
    5. Ian Ayres & Sophie Raseman & Alice Shih, 2013. "Evidence from Two Large Field Experiments that Peer Comparison Feedback Can Reduce Residential Energy Usage," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 29(5), pages 992-1022, October.
    6. Delmas, Magali A. & Lessem, Neil, 2014. "Saving power to conserve your reputation? The effectiveness of private versus public information," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 353-370.
    7. Suter, Jordan F. & Shammin, Md Rumi, 2013. "Returns to residential energy efficiency and conservation measures: A field experiment," Energy Policy, Elsevier, vol. 59(C), pages 551-561.
    8. Frederiks, Elisha R. & Stenner, Karen & Hobman, Elizabeth V., 2015. "Household energy use: Applying behavioural economics to understand consumer decision-making and behaviour," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1385-1394.
    9. Schultz, P. Wesley & Estrada, Mica & Schmitt, Joseph & Sokoloski, Rebecca & Silva-Send, Nilmini, 2015. "Using in-home displays to provide smart meter feedback about household electricity consumption: A randomized control trial comparing kilowatts, cost, and social norms," Energy, Elsevier, vol. 90(P1), pages 351-358.
    10. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    11. Vassileva, Iana & Dahlquist, Erik & Wallin, Fredrik & Campillo, Javier, 2013. "Energy consumption feedback devices’ impact evaluation on domestic energy use," Applied Energy, Elsevier, vol. 106(C), pages 314-320.
    12. 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.
    13. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    14. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    15. Maruejols, Lucie & Young, Denise, 2011. "Split incentives and energy efficiency in Canadian multi-family dwellings," Energy Policy, Elsevier, vol. 39(6), pages 3655-3668, June.
    16. DeWaters, Jan E. & Powers, Susan E., 2011. "Energy literacy of secondary students in New York State (USA): A measure of knowledge, affect, and behavior," Energy Policy, Elsevier, vol. 39(3), pages 1699-1710, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Spandagos, Constantine & Baark, Erik & Ng, Tze Ling & Yarime, Masaru, 2021. "Social influence and economic intervention policies to save energy at home: Critical questions for the new decade and evidence from air-condition use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    2. Batalla-Bejerano, Joan & Trujillo-Baute, Elisa & Villa-Arrieta, Manuel, 2020. "Smart meters and consumer behaviour: Insights from the empirical literature," Energy Policy, Elsevier, vol. 144(C).
    3. 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.
    4. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    5. Andor, Mark A. & Fels, Katja M., 2018. "Behavioral Economics and Energy Conservation – A Systematic Review of Non-price Interventions and Their Causal Effects," Ecological Economics, Elsevier, vol. 148(C), pages 178-210.
    6. Buckley, Penelope, 2020. "Prices, information and nudges for residential electricity conservation: A meta-analysis," Ecological Economics, Elsevier, vol. 172(C).
    7. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    8. Astrid Dannenberg & Gunnar Gutsche & Marlene Batzke & Sven Christens & Daniel Engler & Fabian Mankat & Sophia Moeller & Eva Weingaertner & Andreas Ernst & Marcel Lumkowsky & Georg von Wangenheim & Ger, 2022. "The effects of norms on environmental behavior," MAGKS Papers on Economics 202219, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    9. 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).
    10. Šćepanović, Sanja & Warnier, Martijn & Nurminen, Jukka K., 2017. "The role of context in residential energy interventions: A meta review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 1146-1168.
    11. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Working Papers 2018.07, FAERE - French Association of Environmental and Resource Economists.
    12. Cardella, Eric & Ewing, Brad & Williams, Ryan Blake, 2018. "Green is Good – The Impact of Information Nudges on the Adoption of Voluntary Green Power Plans," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266583, Southern Agricultural Economics Association.
    13. Rebecca Afua Klege & Martine Visser & Saugato Datta & Matthew Darling, 2022. "The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non-residential Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 573-589, March.
    14. Meub, Lukas & Runst, Petrik & von der Leyen, Kaja, 2019. "Can APPealing and more informative bills "nudge" individuals into conserving electricity?," University of Göttingen Working Papers in Economics 372, University of Goettingen, Department of Economics, revised 2019.
    15. Loureiro, Maria & Labandeira, Xavier, 2019. "Exploring Energy Use in Retail Stores: A Field Experiment," Energy Economics, Elsevier, vol. 84(S1).
    16. Martine Visser & Matthew Darling & Rebecca A. Klege & Saugato Datta, 2018. "“The Power of Nudging: Using Feedback, Competition and Responsibility Assignment to Save Electricity in a Non-Residential Settingâ€," Working Papers 763, Economic Research Southern Africa.
    17. 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).
    18. Ben-Haim, Yakov, 2021. "Feedback for energy conservation: An info-gap approach," Energy, Elsevier, vol. 223(C).
    19. Alberts, Genevieve & Gurguc, Zeynep & Koutroumpis, Pantelis & Martin, Ralf & Muûls, Mirabelle & Napp, Tamaryn, 2016. "Competition and norms: A self-defeating combination?," Energy Policy, Elsevier, vol. 96(C), pages 504-523.
    20. Sylvain Chabé-Ferret & Philippe Le Coent & Arnaud Reynaud & Julie Subervie & Daniel Lepercq, 2019. "Can we nudge farmers into saving water? Evidence from a randomised experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 393-416.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:145:y:2020:i:c:s0301421520304857. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.