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Social norms and energy conservation
Abstract
This paper evaluates a series of programs run by a company called OPOWER to send Home Energy Report letters to residential utility customers comparing their electricity use to that of their neighbors. Using data from randomized natural field experiments at 600,000 treatment and control households across the United States, I estimate that the average program reduces energy consumption by 2.0%. The program provides additional evidence that non-price interventions can substantially and cost effectively change consumer behavior: the effect is equivalent to that of a short-run electricity price increase of 11 to 20%, and the cost effectiveness compares favorably to that of traditional energy conservation programs. Perhaps because the treatment included descriptive social norms, effects are heterogeneous: households in the highest decile of pre-treatment consumption decrease usage by 6.3%, while consumption by the lowest decile decreases by only 0.3%. A regression discontinuity design shows that different categories of “injunctive norms” played an insignificant role in encouraging relatively low users not to increase usage.
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“A large meta-analysis found that significant residential energy savings can be achieved [215], by targeting the right interventions to the right households [14,16,17].”
From Tackling climate change with machine learning (2023) · cites this paper as [16]
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InfluentialThe behavioralist as tax collector: Using natural field experiments to enhance tax compliance
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Being surveyed can change later behavior and related parameter estimates
Zwane, A. P., Zinman, J., Dusen, E. V., Parienté, W., Null, C., Miguel, E. A., Kremer, M. R., Karlan, D., Hornbeck, R. A., Xavier Giné, A., et al. (2011) · Proceedings of the National Academy of Sciences · doi:10.1073/pnas.1000776108 · Cited by 268
The capitalization of green labels in the California housing market
Kahn, M. E., & Kok, N. (2013) · Regional Science and Urban Economics · doi:10.1016/j.regsciurbeco.2013.07.001 · Cited by 257
Consumer engagement: An insight from smart grid projects in Europe
Flavia, G., Mengolini, A., & Onyeji, I. (2013) · Energy Policy · doi:10.1016/j.enpol.2013.05.031 · Cited by 265
Steg, L. (2022) · Annual Review of Psychology · doi:10.1146/annurev-psych-032720-042905 · Cited by 323
“Such descriptive norm information can indeed promote climate actions (Allcott 2011; Nolan et al. 2008; Schultz et al. 2007, 2015), although the effect size is small (Abrahamse & Steg 2013).”
BackgroundGans, W., Alberini, A., & Longo, A. (2012) · Energy Economics · doi:10.1016/j.eneco.2012.11.022 · Cited by 272
Beyond Willpower: Strategies for Reducing Failures of Self-Control
Duckworth, A. L., Milkman, K. L., & Laibson, D. (2018) · Gothic.net · doi:10.1177/1529100618821893 · Cited by 294
“In a massive field study run by the company OPower, being informed about the energy consumption of one’s neighbors in similar homes was shown to promote energy conservation, leading to reliable 2% year-over-year reductions in energy usage (Allcott, 2011). Moreover, these reductions in energy use persist over multiple…”
BackgroundMegastudies improve the impact of applied behavioural science
Milkman, K. L., Gromet, D. M., Ho, H., Kay, J., Lee, T. W., Pandiloski, P., Park, Y., Rai, A., Bazerman, M. H., Beshears, J. L., et al. (2021) · Nature · doi:10.1038/s41586-021-04128-4 · Cited by 260
Applying Insights from Behavioral Economics to Policy Design
Madrian, B. C. (2014) · Annual Review of Economics · doi:10.1146/annurev-economics-080213-041033 · Cited by 273
Nudging Energy Efficiency Behavior: The Role of Information Labels
Newell, R. G., & Siikamäki, J. (2014) · Journal of the Association of Environmental and Resource Economists · doi:10.1086/679281 · Cited by 256
Informing Versus Nudging in Environmental Policy
Ölander, F., & Thøgersen, J. B. (2014) · Journal of Consumer Policy · doi:10.1007/s10603-014-9256-2 · Cited by 250
Domestic uptake of green energy promoted by opt-out tariffs
Ebeling, F., & Lotz, S. (2015) · Nature Climate Change · doi:10.1038/nclimate2681 · Cited by 244
Salience of carbon taxes in the gasoline market
Rivers, N., & Schaufele, B. (2015) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2015.07.002 · Cited by 244
Morganti, L., Pallavicini, F., Cadel, E., Candelieri, A., Archetti, F., & Mantovani, F. (2017) · Energy Research & Social Science · doi:10.1016/j.erss.2017.05.001 · Cited by 244
Personalized Normative Feedback and the Moderating Role of Personal Norms
Schultz, P. W., Messina, A., Tronu, G., Limas, E. F., Gupta, R., & Estrada, M. (2014) · Environment and Behavior · doi:10.1177/0013916514553835 · Cited by 236
“This basic effect replicates previous studies (Allcott, 2011; Ferraro & Price, 2011; Schultz et al., 2007) and demonstrates that the approach can be effectively applied to water (see also Fielding et al.”
BackgroundResultVadakkepatt, G., Winterich, K. P., Mittal, V., et al. (2020) · Journal of Retailing · doi:10.1016/j.jretai.2020.10.008 · Cited by 231
Decarbonizing Development: Three Steps to a Zero-Carbon Future
Fay, M., Stéphane Hallegatte, A., Vogt‐Schilb, A., Rozenberg, J., Narloch, U., & Kerr, T. (2015) · World Bank, Washington, DC eBooks · doi:10.1596/978-1-4648-0479-3 · Cited by 234
Business models for distributed energy resources: A review and empirical analysis
Burger, S. P., & Luke, M. (2017) · Energy Policy · doi:10.1016/j.enpol.2017.07.007 · Cited by 228
“Businesses that use this model tend not to provide explicit control or dispatch signals, but rather provide “nudges” and targeted incentives to create a response [41,42].”
BackgroundSchultz, P. W., Estrada, M., Schmitt, J., Sokoloski, R., & Silva-Send, N. (2015) · Energy · doi:10.1016/j.energy.2015.06.130 · Cited by 222
Metadata
- Authors
- Allcott, H.
- Affiliations
- New York University (US)
- Corresponding author
- Allcott, Hunt
- Venue
- Journal of Public Economics
- Publisher
- Elsevier BV
- Published
- 2011-10
- Volume
- 95
- Issue
- 9-10
- Pages
- 1082-1095
- ISSN
- 0047-2727 (ISSN-L)
- OpenAlex
- W2139035425
- Cited by
- 2,802
- References
- 104
- Citations by year
- 2026: 225 · 2025: 209 · 2024: 194 · 2023: 208 · 2022: 226 · 2021: 257 · 2020: 225 · 2019: 240 · 2018: 199 · 2017: 171 · 2016: 165 · 2015: 161 · 2014: 147 · 2013: 94 · 2012: 55
- FWCI
- 263.94
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Public Economics (publishedVersion)
- Topics
- Physical Sciences › Environmental Science › Management, Monitoring, Policy and Law › Pro-Environmental Behavior and Attitudes
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Energy, Environment, and Transportation Policies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Experimental Behavioral Economics Studies
- Keywords
- social norms, energy conservation, social comparison, residential electricity consumption, cost-effectiveness, injunctive norms, descriptive norms, treatment effect heterogeneity
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