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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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“Our findings thus complement the studies on Home Energy Reports (Allcott 2011; Allcott and Rogers 2014), which document the large-scale feasibility of feedback interventions with very large samples, yet with modest savings effects in the range of 0.7 to 2% (Allcott and Rogers 2014; Andor et al. 2020) of household elec…”
InfluentialClosing the Knowledge Gap: Understanding and Reducing the Environmental Impact of Food Choices
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Jain, R. K. (2013) · ProQuest LLC eBooks · doi:10.7916/d8280fzb · Cited by 6
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“These non-economical aspects are also studied in [9] or [10]: The influence of feedback (within a home, between households or between households and suppliers, and the form of these feedbacks) on daily social practices has therefore been studied, and consumption reductions of the same order as for a price increase bet…”
BackgroundLes nudges pour améliorer l’environnement en économie publique
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“3% from approximately 600,000 households [11] and 1.”
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Further evidence on social comparison and residential water use
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“Behavioral science research has shown that social comparison can be a powerful policy tool, especially in the area of environmental conservation.(31,32) Because bringing one’s own shopping bags is a highly visible behavior, even if a small tax initially prods just a few people to abandon disposable bags, this visible…”
BackgroundNorm From The Top: A Social Norm Nudge To Promote Low-Practiced Behaviors Without Boomerang Effect
Rouillé, A. (2024) · SocioEconomic Challenges · doi:10.61093/sec.8(1).123-142.2024 · Cited by 6
Modeling consumer opinions towards dynamic pricing: An agent-based approach
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“proved by [8], [10], [17], [18] and many others.”
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Darby, S. J. (2013) · Carbon Management · doi:10.4155/cmt.13.8 · Cited by 6
Batey, M., & Mourik, R. M. (2016) · Energy Efficiency · doi:10.1007/s12053-015-9415-6 · Cited by 6
“Hence, once again and in spite of good practices prevalent in the USA, employing e.g. Random Control Trials, such as an evaluation of Opower by Allcott (2011), behaviour change in most programmes included in the IEA study, was only measurable through self-reported change of the users themselves…”
BackgroundMethodInfluentialExploring Sustainable Energy Economics: Net Metering, Rate Designs and Consumer Behavior
Klein, S. J. W., & Noblet, C. L. (2017) · Current Sustainable/Renewable Energy Reports · doi:10.1007/s40518-017-0073-5 · Cited by 6
Short-term Interventions for Long-term Change: Spreading Stable Green Norms in Networks
Spencer, G., Carattini, S., & Howarth, R. B. (2019) · Review of Behavioral Economics · doi:10.1561/105.00000095 · Cited by 6
The effectiveness of advice solicitation and social peers in an energy recommender system
Starke, A. D. (2019) · TU/e Research Portal · Cited by 7
Norm compliance in an uncertain world
Fosgaard, T. R., Hansen, L. G., & Wengström, E. (2023) · Journal of Behavioral and Experimental Economics · doi:10.1016/j.socec.2023.102083 · Cited by 7
“…Mohlin, 2019), and that norms can be important in numerous contexts including labor markets (Lindbeck, Nyberg, and Weibull 1999; Stutzer and Lalive 2004), contract design (Fischer and Huddart 2008), asset prices (Hong and Kacperczyk, 2009) and consumers’ pro-environmental decisions (Allcott 2011).”
Measuring household ability to adopt new technology: The case of light-emitting diodes (LEDs)
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Eisenbarth, S., Graham, L., & Rigterink, A. S. (2020) · Environmental and Resource Economics · doi:10.1007/s10640-020-00526-w · Cited by 6
“2007; Allcott 2011).”
BackgroundVogelaar, A., & Priante, A. (2021) · Hawaii International Conference on System Sciences (HICSS) · doi:10.24251/hicss.2021.333 · Cited by 6
“For instance, a field experiment illustrates that exposure to energy consumption of participants’ neighbors had reduced their own consumption by 2% compared to the control group with no normative information [27].”
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Preisendörfer, P., & Diekmann, A. (2021) · Edward Elgar Publishing eBooks · doi:10.4337/9781800370456.00017 · Cited by 6
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Length of residency and water use in an arid urban environment
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Closing the Gender Gap in Natural Resource Management Programs in Mexico
Bank, W. (2018) · World Bank, Washington, DC eBooks · doi:10.1596/31423 · Cited by 6
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“This practice has contributed in reducing the overall domestic consumption by an average of 2% [27].”
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Homophily explains perception biases in social networks.Preprint
Lee, E., Karimi, F., Jo, H.-H., Strohmaier, M., & Wagner, C. (2017) · arXiv (Cornell University) · Cited by 7
Norms in Behavioral Interventions: Peer or Anchoring Effects?Preprint
Verhallen, P., Brrggen, E., Post, T., & Odekerken‐Schröder, G. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3098028 · Cited by 5
“Such interventions putatively alter, for example, alcohol consumption (Ridout & Campbell, 2014), recycling (Thomas & Sharp, 2013), voting (Panagopoulos, Larimer, & Condon, 2012), sustainability behaviors (Goldstein, Cialdini, & Griskevicius, 2008; Van Der Linden, 2015; Elgaaied-Gambier, Monnot, & Reniou, 2018), academ…”
InfluentialDo Consumers Distinguish Fixed Cost from Variable Cost? “Schmeduling" in Two-Part Tariffs in Energy
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Bauer, R. M. M. J., Eberhardt, I., & Smeets, P. (2017) · SSRN Electronic Journal · doi:10.2139/ssrn.3023943 · Cited by 6
Oyo-Ita, A. E., Bosch‐Capblanch, X., Ross, A., et al. (2020) · doi:10.23846/tw10ie127 · Cited by 6
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“(2010)), job seeking (Magruder (2010), Beaman and Magruder (2012)), voting and political outcomes (Fafchamps and Vicente (2013), Galeotti and Mattozzi (2011)), energy choices (Allcott and Allcott (2011), Ayres et al. (2009), Costa and Kahn (2013)). For a comprehensive review of applications of social networks, see Jac…”
InfluentialAn Assessment of the Energy-Efficiency Gap and Its Implications for Climate-Change PolicyPreprint
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“Observing difference to others ’ consumption, individuals might conclude that their own consumption habits are suboptimal (Allcott 2011; but cf. Ferraro and Miranda 2013).”
InfluentialThe role of social norms in retirement saving: Evidence from two natural field experiments
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“For example, a nudge targeting intrinsic motivation through moral suasion (Ito et al. 2018) or social comparison (Allcott 2011 ) might not only have a direct effect but also reduce the crowding out of the monetary incentive.”
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Petralia, A., Charpentier, P., & Palpanas, T. (2023) · Proceedings of the VLDB Endowment · doi:10.14778/3632093.3632115 · Cited by 7
“This knowledge allows them to segment customers [3], offering personalized services that increase their satisfaction and retention and help customers ratio-nalize their electricity consumption, contributing to the energy transition.”
BackgroundContinuous improvement in the efficient use of energy in office buildings through peers effects
Gómez, P., Shaikh, N. I., & Erkoc, M. (2024) · Applied Energy · doi:10.1016/j.apenergy.2024.122646 · Cited by 5
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“For each energy feature, the Kano category that exhibits the highest percentage determines its overall categorization into one of the Kano categories [78].”
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“We also found that social collective feedback nudged people’s behaviors towards sustainable decision-making, consistent with prior work on social norm theories [3, 56, 57].”
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Nie, H., MU, F., & Fan, Y. (2023) · Climate Change Economics · doi:10.1142/s2010007823400079 · Cited by 5
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Energy Conservation and Risk of Electric Outage: Laboratory Experimental Study
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Ökonomische Bildung für eine nachhaltige Entwicklung
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“Vergleichbare Ergebnisse konnten auch für andere Energieformen erzielt werden (vgl. Allcott 2011, Schultz et al. 2007).”
BackgroundEfficient Use of Behavioral Tools to Reduce Electricity Demand of Domestic Consumers
Elbaz, S., & Zaiţ, A. (2016) · Scientific Annals of Economics and Business · doi:10.1515/saeb-2016-0137 · Cited by 4
“However, it was also observed that when consumers noticed their consumption was lower than the average of their neighbors, they increased their electricity consumption, a phenomenon known in psychology as the “boomerang effect” (Allcott, 2011).”
BackgroundClimate change catastrophes and insuring decisions: A study in the presence of ambiguity
le Roux, S. (2018) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2018.07.021 · Cited by 5
Shimshack, J. P. (2015) · 2015 Fall Conference: The Golden Age of Evidence-Based Policy · Cited by 5
Behavioral policy interventions to address education inequality
Castleman, B., Haskins, R., Akers, B., Baron, J., Dynarski, S., Farran, D. C., Feldman, A., Jones, D., Keys, B. J., Maynard, R. A., et al. (2017) · Behavioral Science & Policy · doi:10.1353/bsp.2017.0004 · Cited by 5
Eguiguren-Cosmelli, J. (2018) · Energy Efficiency · doi:10.1007/s12053-017-9595-3 · Cited by 5
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“This reality has encouraged academics and policymakers to consider utilizing social incentives for behavior change, with the argument that they can be cost effective tools for addressing policy challenges (Allcott, 2011, Ashraf et al., 2014, Hallsworth et al., 2017).”
A priori acceptability of various types of digital display feedback on electricity consumption
Fleury, S., Jamet, É., Michinov, E., Michinov, N., & Erhel, S. (2018) · Le travail humain · doi:10.3917/th.813.0247 · Cited by 6
Silva, J. D. A. E., Papaix, C., & Chen, G. (2018) · Transportation research procedia · doi:10.1016/j.trpro.2018.10.066 · Cited by 6
“…related with health perceptions and physical exercise were based on the work of Korn et al. (2013) and Marsh et al. (2010), whereas perceptions about environmental risk and public attitudes towards injunctive and descriptive social norms were based on the work of Linden (2015) and Allcott (2011).”
MethodRecurrent Mobility: Urban Conduits for Diffusion of Energy Efficiency
Mohammadi, N., & Taylor, J. E. (2019) · Scientific Reports · doi:10.1038/s41598-019-56372-4 · Cited by 5
Context-Aware Smart Energy Recommender (CASER)
Sitoula, P., Rahayu, D., Haghighi, P. D., et al. (2019) · doi:10.1145/3365921.3365935 · Cited by 5
“One effective solution uses social norms research and provides the ability to compare to neighbour profiles with similar household characteristics[2].”
BackgroundMethodBehavioural policy 'nudges' to encourage woodland creation for climate change mitigation.
Moseley, D., Dandy, N., Edwards, D. P., et al. (2014) · Cited by 5
Three thumbs up for social norms
Jachimowicz, J. (2020) · Nature Energy · doi:10.1038/s41560-020-00723-3 · Cited by 5
Social Pressure in Networks Induces Public Good Provision
Jimenez‐Gomez, D. (2021) · Games · doi:10.3390/g12010004 · Cited by 5
The Relationship Between Islamic Microfinance and Women Entrepreneurship: A Case Study in Malaysia
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“…motivating voter participation (Gerber & Rogers, 2009), encouraging the reuse of financial products (Goldstein et al., 2008), reducing energy use (Allcott, 2011; Nolan et al., 2008; Schultz et al., 2007), reducing water usage (Ferraro & Price 2013), increasing the consumption of nutritious foods…”
BackgroundDeterrents and nudges improve compliance in Greenland's Atlantic salmon (Salmo salar) fishery
Snyder, H. T., Cox, M. E., Hansen, S. B., Connors, C. S., & Eckstein, S. (2021) · ICES Journal of Marine Science · doi:10.1093/icesjms/fsab159 · Cited by 6
Wan, Q., & Deng, H. (2022) · Frontiers in Psychology · doi:10.3389/fpsyg.2022.865258 · Cited by 5
“…the heterogeneity in the effects of external constraints on group norms, such as under reward, incentive institutions, and marketization mechanisms, Allcott (2011) and Bolsen et al. (2014) found that household water and energy consumption behaviors across different groups show significant…”
BackgroundGold, N., Sallis, A., Saei, A., Arambepola, R., Watson, R., Bowen, S., Franklin, M., & Chadborn, T. (2022) · Trials · doi:10.1186/s13063-022-06373-y · Cited by 5
Making Summer Pay Off: Using Behavioral Science to Encourage Postsecondary Summer Enrollment.
Headlam, C., Anzelone, C., & Weiss, M. J. (2018) · Cited by 5
Nudging consumers towards card payments: a field experiment
Aydoğan, S., & Hove, L. V. (2015) · VUBIR (Vrije Universiteit Brussel) · Cited by 5
Noninvasive Detection of Appliance Utilization Patterns in Residential Electricity Demand
Villar, F. S., Nardelli, P. H. J., Narayanan, A., et al. (2021) · Energies · doi:10.3390/en14061563 · Cited by 5
Informed Dashboard Designs for Microgrid Electricity Market Operators
Goodwin, S., Dkhissi, Y., Wu, Q., Moyle, B., Freidin, K., & Liebman, A. (2021) · ACM International Conference on Future Energy Systems (e-Energy) · doi:10.1145/3447555.3466604 · Cited by 5
“This has been shown to have a positive effect on reducing consumption in residential case study [2], along with the positive effect of the use of icons (e.”
BackgroundIt Wasn't Me! Visibility and Free Riding in Waste SortingPreprint
Bucciol, A., Montinari, N., & Piovesan, M. (2014) · SSRN Electronic Journal · doi:10.2139/ssrn.2440753 · Cited by 5
Teyssier, S., Étilé, F., & Combris, P. (2012) · RePEc: Research Papers in Economics · Cited by 5
Schleich, J. E., Schwirplies, C., & Ziegler, A. R. (2024) · RePEc: Research Papers in Economics · doi:10.17192/es2024.0353 · Cited by 5
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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