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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 example, learning that a neighbor is enrolled in an energy-saving program could make an individual more favorable towards energy saving (Allcott, 2011).”
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“At the same time, everyday practices might be constrained by social factors contributing to group lifestyles (Barr and Gilg, 2006), under the influence of environmental regulation (Porter and van der Linde, 1995), specific social norms (Allcott, 2011; Keiser and Schultz, 2018;)”
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BackgroundResultNudges Don't Work When the Benefits Are Ambiguous: Evidence from a High‐Stakes Education Program
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“…variety of sectors, from increasing financial and retirement savings and preventative health practices, to reducing home energy use and domestic violence (Allcott, 2011; Beshears et al., 2013; ideas42, 2019; Karlan et al., 2016; Madrian and Shea, 2001; Milkman et al., 2012; Stockwell et al., 2012).”
BackgroundThe Effects of Upward and Downward Social Comparisons on Energy Consumption Behavior
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“Equation 3 represents a simple linear demand model for outdoor water consumption similar to those used by Allcott (2011) and Allcott and Kessler (2019).”
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“change, there are also several studies confirming the effectiveness of their social normative approach [7,15,54].”
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“10Allcott (2011) shows providing people with information on their neighbors’ energy consumption causally affects their own energy demand.”
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“We also add to the growing number of recent studies examining how reference to social norms can change a whole range of behaviors, particularly in energy or resource use (Ayers et al., 2013; Costa and Kahn 2013; Allcott 2011; Ferraro and Price 2013).”
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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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