IDEAS home Printed from https://ideas.repec.org/a/ucp/jaerec/doi10.1086-694036.html
   My bibliography  Save this article

Information Provision, Market Incentives, and Household Electricity Consumption: Evidence from a Large-Scale Field Deployment

Author

Listed:
  • Steve Martin
  • Nicholas Rivers

Abstract

We evaluate a large-scale field deployment in which close to 7,000 households subject to time-of-using electricity pricing were provided with an in-home display that provides real-time feedback on electricity consumption and price. We find that receipt of the device results in a reduction in average electricity consumption of about 3%, with this effect roughly constant across hours of the day. We find evidence that households respond to this information in part by forming habits rather than adjusting their load-shifting behavior. We also find that real-time information has an ambiguous effect on household responsiveness to electricity prices, counter to existing literature where information increases responsiveness to price.

Suggested Citation

  • Steve Martin & Nicholas Rivers, 2018. "Information Provision, Market Incentives, and Household Electricity Consumption: Evidence from a Large-Scale Field Deployment," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(1), pages 207-231.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/694036
    DOI: 10.1086/694036
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/694036
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/694036
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/694036?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.

    Citations

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


    Cited by:

    1. Manuel Frondel and Gerhard Kussel, 2019. "Switching on Electricity Demand Response: Evidence for German Households," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    2. Manuel Frondel & Gerhard Kussel, 2019. "Switching on Electricity Demand Response: Evidence for German Households," The Energy Journal, , vol. 40(5), pages 1-16, September.
    3. Lo Piano, S. & Smith, S.T., 2022. "Energy demand and its temporal flexibility: Approaches, criticalities and ways forward," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    4. Kayo Murakami & Hideki Shimada & Yoshiaki Ushifusa & Takanori Ida, 2022. "Heterogeneous Treatment Effects Of Nudge And Rebate: Causal Machine Learning In A Field Experiment On Electricity Conservation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(4), pages 1779-1803, November.
    5. Ekaterina Alekhanova, 2023. "Summertime Sadness: Time Sensitivity of Electricity Savings from a Behavioral Nudge," Carleton Economic Papers 23-01, Carleton University, Department of Economics, revised 11 Nov 2023.
    6. Miller, Steve, 2020. "Causal forest estimation of heterogeneous and time-varying environmental policy effects," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    7. Jesse Burkhardt & Kenneth Gillingham & Praveen K. Kopalle, 2019. "Experimental Evidence on the Effect of Information and Pricing on Residential Electricity Consumption," NBER Working Papers 25576, National Bureau of Economic Research, Inc.
    8. Kapeller, Rudolf & Cohen, Jed J. & Kollmann, Andrea & Reichl, Johannes, 2023. "Incentivizing residential electricity consumers to increase demand during periods of high local solar generation," Energy Economics, Elsevier, vol. 127(PA).
    9. Hofmann, Matthias & Lindberg, Karen Byskov, 2024. "Evidence of households' demand flexibility in response to variable hourly electricity prices – Results from a comprehensive field experiment in Norway," Energy Policy, Elsevier, vol. 184(C).
    10. Kopp, Thomas & Nabernegg, Markus & Lange, Steffen, 2023. "The net climate effect of digitalization, differentiating between firms and households," Energy Economics, Elsevier, vol. 126(C).
    11. Maya Papineau & Nicholas Rivers, "undated". "Visualizing Energy Efficiency: A Picture is Worth More Than 1,022 Words," Carleton Economic Papers 19-10, Carleton University, Department of Economics.
    12. Gosnell, Greer & McCoy, Daire, 2023. "Market failures and willingness to accept smart meters: Experimental evidence from the UK," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    13. Azarova, Valeriya & Cohen, Jed J. & Kollmann, Andrea & Reichl, Johannes, 2020. "Reducing household electricity consumption during evening peak demand times: Evidence from a field experiment," Energy Policy, Elsevier, vol. 144(C).

    More about this item

    Statistics

    Access and download statistics

    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:ucp:jaerec:doi:10.1086/694036. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JAERE .

    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.