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The Effectiveness of Incentives for Residential Energy Conservation

Author

Listed:
  • Paul C. Stern

    (National Research Council)

  • Elliot Aronson

    (Stevenson College, University of California, Santa Cruz)

  • John M. Darley

    (Princeton University)

  • Daniel H. Hill

    (Institute for Social Research)

  • Eric Hirst

    (Oak Ridge National Laboratory)

  • Willett Kempton

    (Center for Energy and Environmental Studies, Princeton University)

  • Thomas J. Wilbanks

    (Oak Ridge National Laboratory)

Abstract

Studies evaluating incentive programs for residential energy efficiency are examined to assess the roles of the size and type of incentive and of nonfinancial aspects of the programs and to infer lessons for policy. Larger incentives are found to increase participation, but marketing and implementation may be more important than incentive size: participation varies tenfold between programs offering identical financial incentives, with more participation in programs operated by trusted organizations and aggressively marketed by word of mouth and other attention-getting methods. Preference for grants versus loans varies with income and other household characteristics. Low-income households can be reached by strong incentives if marketing and implementation are designed carefully.

Suggested Citation

  • Paul C. Stern & Elliot Aronson & John M. Darley & Daniel H. Hill & Eric Hirst & Willett Kempton & Thomas J. Wilbanks, 1986. "The Effectiveness of Incentives for Residential Energy Conservation," Evaluation Review, , vol. 10(2), pages 147-176, April.
    • Handle: RePEc:sae:evarev:v:10:y:1986:i:2:p:147-176
    DOI: 10.1177/0193841X8601000201
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    References listed on IDEAS

    as
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    Cited by:

    1. Olsthoorn, Mark & Schleich, Joachim & Gassmann, Xavier & Faure, Corinne, 2017. "Free riding and rebates for residential energy efficiency upgrades: A multi-country contingent valuation experiment," Energy Economics, Elsevier, vol. 68(S1), pages 33-44.
    2. Zhao, Tingting & Bell, Lindsey & Horner, Mark W. & Sulik, John & Zhang, Jinfeng, 2012. "Consumer responses towards home energy financial incentives: A survey-based study," Energy Policy, Elsevier, vol. 47(C), pages 291-297.
    3. Noppers, Ernst H. & Keizer, Kees & Milovanovic, Marko & Steg, Linda, 2016. "The importance of instrumental, symbolic, and environmental attributes for the adoption of smart energy systems," Energy Policy, Elsevier, vol. 98(C), pages 12-18.
    4. Bauwens, Thomas & Eyre, Nick, 2017. "Exploring the links between community-based governance and sustainable energy use: Quantitative evidence from Flanders," Ecological Economics, Elsevier, vol. 137(C), pages 163-172.
    5. Adua, Lazarus, 2010. "To cool a sweltering earth: Does energy efficiency improvement offset the climate impacts of lifestyle?," Energy Policy, Elsevier, vol. 38(10), pages 5719-5732, October.
    6. Nick Eyre, 2013. "Decentralization of governance in the low-carbon transition," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 27, pages 581-597, Edward Elgar Publishing.
    7. Bradley, Peter & Coke, Alexia & Leach, Matthew, 2016. "Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider," Energy Policy, Elsevier, vol. 98(C), pages 108-120.
    8. Chad M. Baum & Christian Gross, 2017. "Sustainability policy as if people mattered: developing a framework for environmentally significant behavioral change," Journal of Bioeconomics, Springer, vol. 19(1), pages 53-95, April.
    9. Fiorillo, Damiano & Sapio, Alessandro, 2019. "Energy saving in Italy in the late 1990s: Which role for non-monetary motivations?," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    10. Considine, Timothy J. & Sapci, Onur, 2016. "The effectiveness of home energy audits: A case study of Jackson, Wyoming," Resource and Energy Economics, Elsevier, vol. 44(C), pages 52-70.
    11. Carlsson-Kanyama, Annika & Linden, Anna-Lisa, 2007. "Energy efficiency in residences--Challenges for women and men in the North," Energy Policy, Elsevier, vol. 35(4), pages 2163-2172, April.

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