IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v271y2023ics0360544223003821.html
   My bibliography  Save this article

Saving from home! How income, efficiency, and curtailment behaviors shape energy consumption dynamics in US households?

Author

Listed:
  • Kumar, Pranay
  • Caggiano, Holly
  • Shwom, Rachael
  • Felder, Frank A.
  • Andrews, Clinton J.

Abstract

The objective of this study is to analyze the role of energy efficiency and curtailment behaviors and examine how these behaviors are mediated by annual household income to explain overall energy consumption dynamics in US households using a nationally representative dataset. Our two-part empirical analysis first explores the role of annual household income on the efficiency and curtailment behaviors while controlling for the physical and demographic variables using structural equation modeling (SEM). Next, we test the extent and direction of self-reported energy efficiency and curtailment behaviors in explaining total energy/electricity consumption of households using cluster analysis and multivariate linear regression methods. We find efficiency behaviors to be positively correlated with the household income. However, the direction of relationship between income and curtailment behaviors appears to vary depending upon specific actions. Our findings also suggest that in comparison to the consistent role of physical factors in the residential energy consumption, the nature and direction of behavioral factors are mixed and vary with specific behaviors and context. Our study builds upon the existing literature on residential energy saving behaviors and provides important insights for tailored, targeted, and effective policies.

Suggested Citation

  • Kumar, Pranay & Caggiano, Holly & Shwom, Rachael & Felder, Frank A. & Andrews, Clinton J., 2023. "Saving from home! How income, efficiency, and curtailment behaviors shape energy consumption dynamics in US households?," Energy, Elsevier, vol. 271(C).
  • Handle: RePEc:eee:energy:v:271:y:2023:i:c:s0360544223003821
    DOI: 10.1016/j.energy.2023.126988
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223003821
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2023.126988?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. 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.
    2. Véronique Vasseur & Anne-Francoise Marique & Vladimir Udalov, 2019. "A Conceptual Framework to Understand Households’ Energy Consumption," Energies, MDPI, vol. 12(22), pages 1-22, November.
    3. Laura Abrardi, 2019. "Behavioral barriers and the energy efficiency gap: a survey of the literature," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 25-43, March.
    4. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, vol. 56(5), pages 931-945.
    5. Sovacool, Benjamin K., 2011. "Conceptualizing urban household energy use: Climbing the "Energy Services Ladder"," Energy Policy, Elsevier, vol. 39(3), pages 1659-1668, March.
    6. Julia Blasch and Claudio Daminato, 2020. "Behavioral Anomalies and Energy-related Individual Choices: The Role of Status-quo Bias," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6), pages 181-214.
    7. McAndrew, Ryan & Mulcahy, Rory & Gordon, Ross & Russell-Bennett, Rebekah, 2021. "Household energy efficiency interventions: A systematic literature review," Energy Policy, Elsevier, vol. 150(C).
    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. Rachael Shwom & Janet A. Lorenzen, 2012. "Changing household consumption to address climate change: social scientific insights and challenges," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 3(5), pages 379-395, September.
    10. Trotta, Gianluca, 2018. "Factors affecting energy-saving behaviours and energy efficiency investments in British households," Energy Policy, Elsevier, vol. 114(C), pages 529-539.
    11. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    12. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    13. Botetzagias, Iosif & Malesios, Chrisovaladis & Poulou, Dimitra, 2014. "Electricity curtailment behaviors in Greek households: Different behaviors, different predictors," Energy Policy, Elsevier, vol. 69(C), pages 415-424.
    14. Chen, Chien-fei & Xu, Xiaojing & Adua, Lazarus & Briggs, Morgan & Nelson, Hannah, 2022. "Exploring the factors that influence energy use intensity across low-, middle-, and high-income households in the United States," Energy Policy, Elsevier, vol. 168(C).
    15. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    16. Patterson, Murray G, 1996. "What is energy efficiency? : Concepts, indicators and methodological issues," Energy Policy, Elsevier, vol. 24(5), pages 377-390, May.
    17. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    18. Véronique Vasseur & Anne-Francoise Marique, 2019. "Households’ Willingness to Adopt Technological and Behavioral Energy Savings Measures: An Empirical Study in The Netherlands," Energies, MDPI, vol. 12(22), pages 1-25, November.
    19. Chong, Howard, 2012. "Building vintage and electricity use: Old homes use less electricity in hot weather," European Economic Review, Elsevier, vol. 56(5), pages 906-930.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Assessment of Energy and Heat Consumption Trends and Forecasting in the Small Consumer Sector in Poland Based on Historical Data," Resources, MDPI, vol. 12(9), pages 1-33, September.
    2. McCarthy, Breda, 2024. "Moral licensing and habits: Do solar households make negligent choices?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    3. 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.
    4. Hidayati Ramli & Zahirah Mokhtar Azizi & Niraj Thurairajah, 2024. "Sustainable Smart City Technologies and Their Impact on Users’ Energy Consumption Behaviour," Energies, MDPI, vol. 17(4), pages 1-28, February.
    5. Bożena Gajdzik & Radosław Wolniak & Rafał Nagaj & Brigita Žuromskaitė-Nagaj & Wieslaw Wes Grebski, 2024. "The Influence of the Global Energy Crisis on Energy Efficiency: A Comprehensive Analysis," Energies, MDPI, vol. 17(4), pages 1-51, February.
    6. Zhiyu Lv & Xu Zhang, 2023. "Influencing Factor Analysis on Energy-Saving Refrigerator Purchases from the Supply and Demand Sides," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    7. Palaniappan, Somasundaram & Karuppannan, Sundararaju & Velusamy, Durgadevi, 2024. "Categorization of Indian residential consumers electrical energy consumption pattern using clustering and classification techniques," Energy, Elsevier, vol. 289(C).

    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. Trotta, Gianluca, 2018. "Factors affecting energy-saving behaviours and energy efficiency investments in British households," Energy Policy, Elsevier, vol. 114(C), pages 529-539.
    2. Laura Abrardi, 2019. "Behavioral barriers and the energy efficiency gap: a survey of the literature," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 25-43, March.
    3. Rockstuhl, Sebastian & Wenninger, Simon & Wiethe, Christian & Häckel, Björn, 2021. "Understanding the risk perception of energy efficiency investments: Investment perspective vs. energy bill perspective," Energy Policy, Elsevier, vol. 159(C).
    4. Chersoni, Giulia & DellaValle, Nives & Fontana, Magda, 2022. "Modelling thermal insulation investment choice in the EU via a behaviourally informed agent-based model," Energy Policy, Elsevier, vol. 163(C).
    5. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2021. "Heterogeneous preferences and investments in energy saving measures," Resource and Energy Economics, Elsevier, vol. 63(C).
    6. Shigeru Matsumoto & Hajime Sugeta, 2022. "Efficiency Investment and Curtailment Action," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 759-789, November.
    7. Dalia Streimikiene & Tomas Balezentis & Irena Alebaite, 2020. "Climate Change Mitigation in Households between Market Failures and Psychological Barriers," Energies, MDPI, vol. 13(11), pages 1-21, June.
    8. Schleich, Joachim & Gassmann, Xavier & Meissner, Thomas & Faure, Corinne, 2023. "Making the factors underlying the implicit discount rate tangible," Energy Policy, Elsevier, vol. 177(C).
    9. 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).
    10. Dieckhoener, Caroline, 2012. "Does subsidizing investments in energy efficiency reduce energy consumption? Evidence from Germany," EWI Working Papers 2012-17, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    11. Mark A. Andor & David H. Bernstein & Stephan Sommer, 2021. "Determining the efficiency of residential electricity consumption," Empirical Economics, Springer, vol. 60(6), pages 2897-2923, June.
    12. 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.
    13. Spandagos, Constantine & Yarime, Masaru & Baark, Erik & Ng, Tze Ling, 2020. "“Triple Target” policy framework to influence household energy behavior: Satisfy, strengthen, include," Applied Energy, Elsevier, vol. 269(C).
    14. Saunders, Harry D. & Roy, Joyashree & Azevedo, Inês M.L. & Chakravarty, Debalina & Dasgupta, Shyamasree & De La Rue Du Can, Stephane & Druckman, Angela & Fouquet, Roger & Grubb, Michael & Lin, Boqiang, 2021. "Energy efficiency: what has research delivered in the last 40 years?," LSE Research Online Documents on Economics 114344, London School of Economics and Political Science, LSE Library.
    15. J. K. Perret & V. Udalov & N. Fabisch, 2022. "Motivations behind individuals’ energy efficiency investments and daily energy-saving behavior: The case of China," International Economics and Economic Policy, Springer, vol. 19(1), pages 129-155, February.
    16. d'Adda, Giovanna & Galliera, Arianna & Tavoni, Massimo, 2020. "Urgency and engagement: Empirical evidence from a large-scale intervention on energy use awareness," Journal of Economic Psychology, Elsevier, vol. 81(C).
    17. Spandagos, Constantine & Ng, Tze Ling, 2018. "Fuzzy model of residential energy decision-making considering behavioral economic concepts," Applied Energy, Elsevier, vol. 213(C), pages 611-625.
    18. 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.
    19. Candice Howarth & Ben M. Roberts, 2018. "The Role of the UK Green Deal in Shaping Pro-Environmental Behaviours: Insights from Two Case Studies," Sustainability, MDPI, vol. 10(6), pages 1-18, June.
    20. Chatzigeorgiou, I.M. & Andreou, G.T., 2021. "A systematic review on feedback research for residential energy behavior change through mobile and web interfaces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).

    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:energy:v:271:y:2023:i:c:s0360544223003821. 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.journals.elsevier.com/energy .

    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.