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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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“Second, social norm information treatment studies typically provide users with information on how their usage compares to others (Allcott, 2011; Ferraro & Price, 2013).”
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“In addition, peer-comparison (i.e. normative feedback) for a relative evaluation can be used for a small group of residents (Jain, Taylor, and Peschiera 2012; Anderson et al. 2017) or large-scale utility programmes (Allcott 2011).”
MethodParticipation in domestic energy retrofit programmes: key spatio-temporal drivers
Mohareb, E. A., Gillich, A., & Bristow, D. N. (2022) · Buildings and Cities · doi:10.5334/bc.202 · Cited by 9
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“Social norms have been successfully used as behavioral levers in diverse fields, such as wearing seatbelts (Linkenbach and Perkins 2003), encouraging charitable donations (Frey and Meier 2004), and energy savings (Allcott 2011; see also Farrow, Grolleau, and Ibanez 2017).”
BackgroundPublic media campaign and energy conservation: A natural experiment in Singapore
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“This could be a straightforward application, which is similar to Home Energy Reports (HERs) [47], the effects of which were identified and widely applied to actual services, although the topic of HERs is promotion of energy conservation for residential sectors and different from our present study.”
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Vasilaky, K., Harou, A. P., Alfredo, K. A., & Kapur, I. (2023) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2023.102802 · Cited by 11
Examining the Role of Neutralization in Pro-Environmental Behavior
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Facchini, A., Rottondi, C., & Verticale, G. (2017) · Energy Efficiency · doi:10.1007/s12053-017-9510-y · Cited by 9
“Therefore, social norms are nowadays an important topic of research not only in contemporary sociology, economics or game theory, but also in environmental sciences (Allcott 2011; Kinzig et al. 2013).”
BackgroundPublic good provision, in-group cooperation and out-group descriptive norms: A lab experiment
Kandul, S., & Lanz, B. (2021) · Journal of Economic Psychology · doi:10.1016/j.joep.2021.102382 · Cited by 9
Efficiency criteria for nudges and norms
Viscusi, W. K. (2019) · Public Choice · doi:10.1007/s11127-019-00712-5 · Cited by 9
“In the case of injunctive social norm nudges to promote energy conservation, the nudge policy increased energy conservation only by 2.0% (Allcott 2011).”
BackgroundInfluentialInformational nudges and public goods in networks
Ouvrard, B., & Stenger, A. (2019) · Journal of Environmental Economics and Policy · doi:10.1080/21606544.2019.1676826 · Cited by 9
Kowalska-Pyzalska, A., Byrka-Kita, K., & Serek, J. (2020) · Energies · doi:10.3390/en13184737 · Cited by 9
Are Information Disclosure Mandates Effective? Evidence from the Credit Card Market
Elizondo, A., & Seira, E. (2014) · doi:10.36095/banxico/di.2014.18 · Cited by 9
Cesareo, M., Tagliabue, M., Oppo, A., & Moderato, P. (2021) · Cogent Psychology · doi:10.1080/23311908.2021.1880304 · Cited by 12
“Moreover, the overuse of smartphones was shown to heighten psychological distress (Chesley, 2005) and lead to other health issues, such as sleep disturbances and depression (Thomée et al., 2007, 2011).”
BackgroundLi, Z., & Cao, X. (2021) · Frontiers in Environmental Science · doi:10.3389/fenvs.2021.626890 · Cited by 8
“In addition, evidence has shown that peers’ or neighbors’ behavior significantly influences the residents’ behavior change and proves the effectiveness of social norms in response to information feedback (Allcott, 2011).”
BackgroundWhen a nudge is (not) enough: Experiments on social information and incentives
Chen, J., Fonseca, M. A., & Grimshaw, S. B. (2021) · European Economic Review · doi:10.1016/j.euroecorev.2021.103711 · Cited by 9
Jin, E., & Brown‐Devlin, N. (2021) · Mass Communication & Society · doi:10.1080/15205436.2021.1910962 · Cited by 9
“© 2021 Mass Communication & Society Division of the Association for Education in Journalism and Mass Communication global warming (Allcott, 2011; Alló & Loureiro, 2014; Bolsen et al., 2014; Steentjes et al., 2017).”
BackgroundSocial policy instruments and the compliance environment
Kessler, J. B., Low, C., & Singhal, M. (2021) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2021.09.037 · Cited by 8
Zikmund‐Fisher, B. J., Tuepker, A., Metcalf, E. E., Strange, W., & Teo, A. R. (2021) · Patient Education and Counseling · doi:10.1016/j.pec.2021.10.024 · Cited by 9
Fanghella, V., D’Adda, G., & Tavoni, M. (2022) · Journal of Environmental Economics and Management · doi:10.1016/j.jeem.2022.102662 · Cited by 9
Tian, Z., & Shi, X. (2022) · Energy and Buildings · doi:10.1016/j.enbuild.2022.112244 · Cited by 9
Field experimental evidence of how social relations shape behavior that promotes energy conservation
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“…that lead to further adoption, and comparing a household’s electricity bill to that of its neighbors has been shown to reduce home energy use (Allcott, 2011).31 Considering the spatial spillover, this word-of-mouth communication is more advantageous in small and medium-sized communities…”
Categorizing relative water use perception bias using household surveys and monthly water bills
Haeffner, M., Jackson‐Smith, D. B., & Barnett, M. J. (2023) · Journal of Environmental Management · doi:10.1016/j.jenvman.2023.117443 · Cited by 10
An experimental study of consumer attitudes and intentions in electricity markets
Russo, G. D., Lytle, A. E., Hoffenson, S., Wu, L., & Mahoney, C. (2023) · Cleaner and Responsible Consumption · doi:10.1016/j.clrc.2023.100116 · Cited by 9
Schneider, P. T., van de Rijt, A., Boele, C., & Buskens, V. (2023) · Energy Efficiency · doi:10.1007/s12053-023-10116-6 · Cited by 9
“One approach that requires sufficient numbers of cases near the threshold of average consumption is a regression-discontinuity design, in which the discontinuous effect of a social comparison treatment is separated from the continuous effect of pre-treatment consumption on post-treatment consumption (Allcott, 2011).”
BackgroundFormal and informal quota enforcement
Nøstbakken, L. (2012) · Resource and Energy Economics · doi:10.1016/j.reseneeco.2012.10.001 · Cited by 11
“Individual differences in the propensity to obey the norm is in line with the empirical findings of Allcott (2011), who study how social norms affect energy conservation.”
ResultSocial acceptance of green energy and dynamic electricity tariffs — A short review
Kowalska-Pyzalska, A. (2015) · Modern Electric Power Systems · doi:10.1109/meps.2015.7477192 · Cited by 14
“Many researchers showed that strong social norms, are needed to encourage adoption [6, 8, 9, 30, 31, 35-38].”
BackgroundResultInfluentialEnergyUse - A Collective Semantic Platform for Monitoring and Discussing Energy Consumption
Burel, G., Piccolo, L. S. G., & Alani, H. (2016) · Lecture notes in computer science · doi:10.1007/978-3-319-46547-0_26 · Cited by 9
“Comparisons and Competitions Peer comparisons and competitions tend to be effective interventions in nudging towards greener behaviour [10, 3].”
BackgroundHow peer effects influence energy consumption
Zhou, D. P., Roozbehani, M., Dahleh, M. A., et al. (2017) · Proceedings of the IEEE Conference on Decision & Control, including the Symposium on Adaptive Processes · doi:10.1109/cdc.2017.8264229 · Cited by 9
“all experiments unanimously found an average reduction among the highest consuming users of around 1-2% [4], ambiguous results were found among low consumers.”
ResultAccess to and consumption of natural gas: Spatial and socio-demographic drivers
Curtis, J. A., Tovar, M. A., & Grilli, G. (2020) · Energy Policy · doi:10.1016/j.enpol.2020.111614 · Cited by 11
“For example, Allcott (2011) examines how communicating social norms impacts on energy consumption.”
BackgroundBehavioural economics and health
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“Seeing their energy use benchmarked against other buildings may reinforce that effect; peer effects have also been shown to influence energy consumption (Allcott 2011; Costa and Kahn 2013, Ayres et al. 2013).”
BackgroundEnergy Efficiency and Conservation Attitudes: An Exploration of a Landscape of Choices
McClaren, M. (2015) · doi:10.15760/etd.2198 · Cited by 8
“This was documented by Opower Home Energy Report experiments, in which residents received reports of their home’s energy usage and a comparison of their consumption to their neighbors’ (Allcott, 2011).”
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“The first two questions are partly addressed in Attari et al. (2010). They investigate the perception of energy consumption and savings for a variety of household activities using a survey approach.”
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“As an example, OPOWER company exploits social norms to influence people conserve energy, by sending energy report letters to residential utility customers, comparing their electricity use to that of their neighbors (Allcott, 2011).”
BackgroundBehavioral Approaches to Managing Household Energy Consumption
Baddeley, M. C. (2015) · Springer eBooks · doi:10.1007/978-3-319-16793-0_9 · Cited by 11
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BackgroundHarold, J., Lyons, S., & Cullinan, J. (2018) · Energy Economics · doi:10.1016/j.eneco.2018.04.034 · Cited by 8
Analyzing residential weatherization decisions using hybrid simulation modeling
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Improvingacceptability of nudges: Learning from attitudes towards opt-in and opt-outpolicies
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Zhang, J., Zhang, L., Qin, Y., et al. (2020) · 地理科学进展 · doi:10.18306/dlkxjz.2020.02.008 · Cited by 8
Behavioural insights for conservation and sustainability
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“For example, comparing householders’ energy use to their more efficient neighbours reliably reduces consumption by a few percent (Allcott, 2011), and telling hotel guests that most others re-used their towel led to 44% doing so, significantlymore than with a conventional environmental message…”
BackgroundThe development of a social norms adherence intervention for adolescents with epilepsy
Modi, A. C., Patel, A. D., Gutierrez‐Colina, A. M., Wetter, S. E., Heckaman, L. M., Debs, A., Mara, C. A., Wentzel, E., Schmidt, M., & Stevens, J. H. (2020) · Epilepsy & Behavior · doi:10.1016/j.yebeh.2020.107628 · Cited by 8
“, receiving feedback that peers’ behavior surpasses one’s own behavior) can boost suboptimal performance [24-26].”
BackgroundDo Household Time, Risk, and Social Preferences Affect Home Energy Retrofit Decisions in Korea?
Kim, J., & Nam, S. (2021) · Sustainability · doi:10.3390/su13084152 · Cited by 8
“Allcott [20] provided the evidence that the Home Energy Report reduces energy consumption by 2.”
BackgroundThe impact of social norms on cross-state energy regime changes
Farhidi, F., & Khiabani, V. (2021) · Energy Policy · doi:10.1016/j.enpol.2021.112257 · Cited by 8
Behavioural approaches and conservation messages with New Zealand’s threatened kiwi
Walsh, P. J. (2021) · Global Ecology and Conservation · doi:10.1016/j.gecco.2021.e01694 · Cited by 8
“Previous messaging research in other areas, like energy conservation (Allcott, 2011; Allcott and Rogers, 2014) and recreation (Allpress, 2019), has found that behavioural messaging techniques like nudging can improve environmental performance or behaviour.”
BackgroundMethodInfluentialUnderstanding the rebound: normative evaluations of energy use in the United States
Horne, C., & Kennedy, E. H. (2021) · Environmental Sociology · doi:10.1080/23251042.2021.1958545 · Cited by 8
Bonner, A. C., Biglan, A., & Drugan-Eppich, K. (2021) · Perspectives on Behavior Science · doi:10.1007/s40614-021-00316-9 · Cited by 10
“, Allcott, 2011; Ayres et al., 2012), reductions in energy consumption were observed. In the last decade, similar programs have been rolled out nationwide to provide households with knowledge and information about their energy consumption in the name of energy conservation. However, similar examples of intervention sc…”
BackgroundMethodInfluentialManaging healthcare costs by peer-group modeling
Weiss, S. M., Kulikowski, C. A., Galen, R. S., et al. (2015) · Applied Intelligence · doi:10.1007/s10489-015-0685-7 · Cited by 8
“For example, in a different context, electricity utilities often provide such feedback with monthly utility bills, which have been shown to promote energy conservation [2].”
Backgroundde Walque, D., Chukwuma, A., Ayivi-Guedehoussou, N., & Koshkakaryan, M. (2022) · Social Science & Medicine (1967) · doi:10.1016/j.socscimed.2022.114763 · Cited by 5
Siepelmeyer, H., & Otterbring, T. (2022) · Frontiers in Sustainability · doi:10.3389/frsus.2022.899938 · Cited by 8
“…existing sustainability literature, they are often implied merely as preconditions, as in studies using social normative influence to foster environmentally beneficial behaviors (Allcott, 2011; Loschelder et al., 2019) that assume a certain degree of social identity in the invoked reference group.”
BackgroundTalukder, A., Islam, M. N., Sarker, M., Goswami, I., Siddiqua, R. R., Akter, F., Chowdhury, S., Chowdhury, I. A., Rahman, A.-U., & Latif, A. H. M. M. (2022) · BMJ Open · doi:10.1136/bmjopen-2021-059091 · Cited by 8
Behavioral messages and debt repayment
Barboni, G., Cárdenas, J.-C., & de Roux, N. (2026) · Review of Finance · doi:10.1093/rof/rfag015 · Cited by 8
Partisanship and energy efficiency program participation in the USA
Mayer, A., Carter, E. M., & Feinberg, E. (2023) · npj Climate Action · doi:10.1038/s44168-023-00066-1 · Cited by 8
“The most well-known examples of nudges involve providing households information about the energy consumption of comparable neighbors 18 or similar interventions that are meant to shift social norms 19 .”
Background
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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