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The effect of information nudges on energy saving: Observations from a randomized field experiment in Finland

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  • Ruokamo, Enni
  • Meriläinen, Teemu
  • Karhinen, Santtu
  • Räihä, Jouni
  • Suur-Uski, Päivi
  • Timonen, Leila
  • Svento, Rauli

Abstract

Field experiments have shown that information nudging can help households to save energy, however, the effectiveness varies depending on aspects such as information content, delivery mode and study area. This article evaluates the impacts of information nudges on residential electricity consumption with a randomized field experiment. This opt-in experiment was conducted in Finland. Information was administered via monthly email newsletters and an online energy service platform. The aim is to find out whether i) energy saving tips combined with and without online energy service platform providing electricity consumption information, and ii) peer comparisons (i.e., social norm) influence households’ electricity consumption. The results show a high seasonal variation in the treatment effects within the groups who were registered users of the online energy service platform. Those with access to usage feedback and versatile energy savings tips (without the social norm comparisons) reduced their electricity consumption around 10% in wintertime. The results imply challenges in encouraging energy saving behavior among households less interested in following their electricity consumption.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:enepol:v:161:y:2022:i:c:s0301421521005978
    DOI: 10.1016/j.enpol.2021.112731
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    2. John List & Ioannis Pragidis & Michael Price, 2024. "Toward an Understanding of the Economics of Prosumers: Evidence from a Natural Field Experiment in Energy," Natural Field Experiments 00791, The Field Experiments Website.
    3. Anne Immonen & Maria Kopsakangas-Savolainen, 2022. "Capturing Consumers’ Awareness and the Intention to Support Carbon Neutrality through Energy Efficient Consumption," Energies, MDPI, vol. 15(11), pages 1-27, May.
    4. 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.
    5. Zha, Donglan & Zhang, Chaoqun & Jiang, Pansong & Wang, Fu, 2024. "What makes energy consumption behavior visible? Conceptualization, scale development and validation of customized information feedback," Journal of Business Research, Elsevier, vol. 182(C).
    6. Lia Marchi & Jacopo Gaspari, 2023. "Energy Conservation at Home: A Critical Review on the Role of End-User Behavior," Energies, MDPI, vol. 16(22), pages 1-22, November.
    7. 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.
    8. Alettin Irmak & Nurlan Kurmanov & Onaikhan Zhadigerova & Zukhra Turdiyeva & Aigul Bakirbekova & Gaukhar Saimagambetova & Assilbek Baidakov & Aigul Mukhamejanova & Madina Tolysbayeva & Sagyngali Seitzh, 2023. "Shaping Energy-Saving Behavior in Education System: A Systematic Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 46-60, July.
    9. Haicheng Ling & Pierre-Yves Massé & Thibault Rihet & Frédéric Wurtz, 2023. "Realistic Nudging through ICT Pipelines to Help Improve Energy Self-Consumption for Management in Energy Communities," Energies, MDPI, vol. 16(13), pages 1-24, July.
    10. Adélaïde Fadhuile & Daniel Llerena & Béatrice Roussillon, 2023. "Intrinsic Motivation to Promote the Development of Renewable Energy : A Field Experiment from Household Demand," Working Papers hal-03977597, HAL.
    11. Zhang, Chaoqun & Zha, Donglan & Jiang, Pansong & Wang, Fu & Yang, Guanglei & Salman, Muhammad & Wu, Qing, 2023. "The effect of customized information feedback on individual electricity saving behavior: Evidence from a field experiment in China," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    12. von Zahn, Moritz & Bauer, Kevin & Mihale-Wilson, Cristina & Jagow, Johanna & Speicher, Max & Hinz, Oliver, 2022. "The smart green nudge: Reducing product returns through enriched digital footprints & causal machine learning," SAFE Working Paper Series 363, Leibniz Institute for Financial Research SAFE, revised 2022.

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    More about this item

    Keywords

    Behavior; Conservation; Electricity; Energy advice; Experiment; Finland; Intervention; Nudging; Randomized field trial; Social norm;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • 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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