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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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“For instance, a study by Allcott (2011) showed that households receiving letters comparing their energy consumption to similar neighbors reduced usage by 2 %, comparable to the impact of traditional financial interventions.”
Baeriswyl, M., Przepiorka, W., & Staake, T. (n.d.) · Alexandria (UniSG) (University of St.Gallen) · doi:10.48620/92697 · Cited by 8
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“The research notes that home occupants tend to respond to behavioral information (Allcott 2011) and that scholars have observed lower prepayments and defaults associated with buyers of highperformance houses (Kaza et al. 2014; Rauterkus et al. 2010).”
BackgroundKreitmair, U. (2015) · Ecology and Society · doi:10.5751/es-08004-200433 · Cited by 10
“…In field experiments in which the underlying game structure may be described as an environmental social dilemma (see, for example, Schultz 1999, Cialdini et al. 2006, Goldstein et al. 2008, Allcott 2011, Ayres et al. 2013, Ferraro and Price 2013), individuals are swayed by social information.”
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Curtis, J. A., Devitt, N., Cosmo, V. D., Farrell, N., Fitzgerald, J., Hyland, M., Lynch, M. Á., Lyons, S., McCoy, D., Valeri, L. M., et al. (2014) · RePEc: Research Papers in Economics · Cited by 8
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“On an average, the cuts were estimated at 2% [19].”
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“Randomized control trials (RCT) are becoming increasingly popular way to study energy efficiency implementation, (e.g., Allcott, 2011), but the IAC is not a RCT and the IAC data by themselves are not readily amenable to quasi-experimental analyses.”
BackgroundContests versus Norms: Implications of Contest-Based and Norm-Based Intervention Techniques
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“, 2016; Jaeger and Schultz, 2017) and energy in residential (Schultz et al., 2007, 2015; Nolan et al., 2008; Allcott, 2011) and public settings (Oceja and Berenguer, 2009; Bator et al.”
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“These include, for example, poster messages for promoting stair-climbing behaviour in the workplace [48], clearer labelling for encouraging the purchase of energy-efficient appliances [49], and text messages, emails, or letters for encouraging energy savings in the household sector [50].”
BackgroundSælen, H. G., & Westskog, H. (2013) · Energy and Environment Research · doi:10.5539/eer.v3n1p135 · Cited by 8
“Studies from other countries (Allcott, 2011; Ayres et al., 2009; Darby, 2006), have found that using the right type of information might lead to saving of energy.”
BackgroundLu, L. (2019) · International Journal of Water Resources Development · doi:10.1080/07900627.2019.1684244 · Cited by 8
“In practice, under non-price approaches, water e ffi ciency has increasingly been pursed in the form of retro fi tting programmes in England and Wales (Waterwise, 2009, 2011).”
InfluentialAlberini, A., Bareit, M., & Filippini, M. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2403696 · Cited by 8
Unraveling the “Social” in Social Norms: The Conditioning Effect of User ConnectivityPreprint
Liu, C.-W., Gao, G., & Agarwal, R. (2019) · SSRN Electronic Journal · doi:10.2139/ssrn.2937500 · Cited by 1
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Behavioral Science and Climate Policy
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List, J. A., Murphy, J. J., Price, M., et al. (2019) · National Bureau of Economic Research · doi:10.3386/w26559 · Cited by 8
“…tax compliance (Fellner et al., 2013; Hallsworth et al., 2017), traffic violations (Chen et al., 2017), or the amount of water or energy used by residential households (Allcott, 2011; Costa and Kahn, 2013; Ferraro and Price, 2013; Allcott and Rogers, 2014; Brent et al., 2015; Ito et al., 2018).”
Bruelisauer, M., Goette, L. F., Jiang, Z., et al. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3299500 · Cited by 8
“…2011; Brandon et al., 2018; Costa and Kahn, 2013).1 Information about social norms helps to reduce electricity consumption significantly (see, e.g., Allcott, 2011), is effective in the long run (Allcott and Rogers, 2014; Brandon et al., 2017; Ito et al., 2018; Jessoe and Rapson, 2014), and…”
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Khwaja, A. I., Haq, O., Khan, A., et al. (2020) · doi:10.23846/dpw1ie117 · Cited by 8
Promotional Campaign Duration and Word-of-Mouth in Durable Good AdoptionPreprint
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“Other potential mechanisms behind peer e ects include visibility of adoption as shown in the context of dry landscape conversions (Bollinger et al., 2018), and the establishment of social norms by observable aggregate statistics speci c to the area or to peers (Allcott, 2011).”
BackgroundPro-Environmental Incentives and Loss Aversion: A Field Experiment on Electricity Saving BehaviorPreprint
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“For example, see Allcott (2011); Jessoe and Rapson (2014); Ito, Ida, and Tanaka (2018); Fowlie, Greenstone, and Wolfram (2018); Fowlie et al. (2017); Allcott and Greenstone (2017); and Jack and Smith (2019).”
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BackgroundMaking the factors underlying the implicit discount rate tangible
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“…descriptive and/or injunctive norms has significant impact on energy related practices in public (Bator et al., 2014; Bergquist & Nilsson, 2016; Dwyer et al., 2015; Liu et al., 2016) and residential settings (Allcott, 2011; Ayres et al., 2013; Bhanot, 2021; Schultz et al., 2007, 2015).”
BackgroundSchorn, A., & Wirth, W. (2024) · Frontiers in Psychology · doi:10.3389/fpsyg.2024.1337585 · Cited by 6
“…and injunctive feedback to prevent backfire effects coming along with descriptive minority norms has frequently been confirmed, referred to as norm alignment effect (e.g., Schultz et al., 2007; Allcott, 2011; Bergquist and Nilsson, 2016; Schultz et al., 2016; Bhanot, 2018; Bonan et al., 2020).”
BackgroundNudging citizens co-production: Assessing multiple behavioral strategies
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“Another policy area in which norm-nudges have been applied extensively is environmental policy and conservation of energy sources (Allcott, 2011; Bhanot, 2021; Cialdini, 2003).”
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“11 As this effect is a concern in behavioral intervention studies (Allcott, 2011; Scharf et al., 2022), the absence of this effect in our study is meaningful.”
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“In line with this, normative feedback seems to be a powerful tool for reducing residential energy consumption (Abrahamse et al., 2005; Allcott, 2011; Bergquist & Nilsson, 2016; Karlin et al., 2015; Nolan, Schultz, Cialdini, Goldstein, & Griskevicius, 2008; Schultz, Estrada, Schmitt, Sokoloski, &…”
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“Gainesville Regional Utilities (GRU) with Opower employed social norms in conjunction with its innovative home energy reports by comparing residential utility customers’ electricity use to that of their neighbors (Allcott 2011).”
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BackgroundSocial network design for inducing effort
Yıldırım, P., Wei, Y. “., den Bulte, C. V., & Lu, J. (2020) · Quantitative Marketing and Economics · doi:10.1007/s11129-020-09227-6 · Cited by 7
“More recently, field experiments have shown that people are more likely to re-use towels in a hotel, to make charitable donations, to consume less energy, to consume less water, to exercise, to pay overdue taxes, and to rate movies when they see or are told that others do so, even when they have no prior connection to…”
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“There is extensive evidence of social norms from the environmental economics and experimental economics literatures, including Allcott (2011), Campa and Serafinelli (2016), Cappelen et al. (2013), Dal Bó and Tervió (2013), DellaVigna et al. (2012), Fellner et al. (2013), Ferraro and Price (2013),…”
Local norms describing the role of the state and the private provision of training
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Bir Kamu Politikası Aracı Olarak Davranışsal İçgörü
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Suggested use? On evidence‐based decision‐making in industrial ecology and beyond
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“Based on a randomized field experiment, Allcott (2011) shows that nonincentive social norms leads to residential energy conservation.”
BackgroundChoi, S., Hwang, S., & Denzau, A. T. (2021) · Energy · doi:10.1016/j.energy.2021.120292 · Cited by 7
Ohtake, F. (2021) · Japanese Economic Review · doi:10.1007/s42973-021-00095-7 · Cited by 7
“2019), and energy-saving behaviors (Allcott 2011).”
Latkin, C. A., Dayton, L., Coyle, C. R., Yi, G. T., Lee, D., & Winiker, A. K. (2021) · International Journal of Environmental Research and Public Health · doi:10.3390/ijerph182413037 · Cited by 9
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Richard Thaler and the Rise of Behavioral EconomicsPreprint
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Social Preferences and Social CuriosityPreprint
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Discussion of current theories and future research on attitude-behavior gap in green consumption
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“…social norms is a norm-nudge (Bicchieri and Dimant, 2019), which encourages certain behavior by informing individuals about the actions of others, for example by showing energy conservation behavior of neighbors (Allcott, 2011) or tax compliance rates of fellow citizens (Hallsworth et al., 2017).”
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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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