Cited by 2,802Pro-Environmental Behavior and AttitudesEnergy, Environment, and Transportation PoliciesExperimental Behavioral Economics Studies

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Social norms and energy conservation

Allcott, Hunt·2011·Journal of Public Economics

DOI 10.1016/j.jpubeco.2011.03.003

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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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“Monetary incentives, such as direct rewards and rebates, have been widely studied as a strategy to reduce household electricity consumption (Fischer 2008; Borenstein et al. 2002; Hargreaves et al. 2010; Allcott 2011a,b; Goulden et al. 2014).”

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)
DOI: 10.1016/j.jpubeco.2011.03.003
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
Licence: www.elsevier.com/tdm/userlicense/1.0/ (tdm)
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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