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Non-price energy conservation information and household energy consumption in a developing country: evidence from an RCT

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  • Ahsanuzzaman,
  • Eskander, Shaikh
  • Islam, Asad
  • Wang, Liang Choon

Abstract

We use a randomized controlled trial in Bangladesh to test three types of non-price energy conservation strategies that influence electricity consumption of households: (i) advice on electricity conservation methods (knowledge treatment); (ii) (median) electricity consumption of others in the suburb (suburb comparison); and (iii) (median) electricity consumption of neighbors (neighbor comparison). We find that providing advice on saving energy could reduce households' electricity consumption and bills significantly. The effects are stronger for advice on electricity conservation methods than neighbor and suburb comparisons. The effects of providing information about own electricity consumption relative to neighbors’ electricity consumption is similar to the effects of giving information about own electricity consumption relative to electricity consumption of households in the same suburb. The effects among households who were inefficient users in neighbor and suburb comparison groups are almost as strong as those in the knowledge treatment group. The effects across all treatment groups become stronger over time as they receive repeated information.

Suggested Citation

  • Ahsanuzzaman, & Eskander, Shaikh & Islam, Asad & Wang, Liang Choon, 2024. "Non-price energy conservation information and household energy consumption in a developing country: evidence from an RCT," LSE Research Online Documents on Economics 123900, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123900
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    File URL: http://eprints.lse.ac.uk/123900/
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    References listed on IDEAS

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    More about this item

    Keywords

    electricity consumption; energy efficiency; field experiment; non-price information; social norms;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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