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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“…Info, T Info, Action yes (all treatment conditions) Allcott and Rodgers 2014 [63] E Info, T Info yes Effects initially steep but level off over time Allcott 2011 [62] E Info, T Info yes Bernstad 2014 [50] F Info, Material no (info), yes (material) Bernstad et al. 2013 [52] F Info no Boudet et al.…”
Background
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When a Nudge Backfires: Using Observation with Social and Economic Incentives to Promote Pro-Social BehaviorPreprint
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Green Nudges: Do They Work? Are They Ethical?Preprint
Schubert, C. R. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2729899 · Cited by 27
“In turn, it has informed the most highly ranked journal articles in the area of green nudging, to wit, Allcott (2011), Costa and Kahn (2013), and Allcott and Rogers (2014).”
BackgroundInfluential
Intergenerational transmission in regulated professions and the role of familism
Bamieh, O., & Cintolesi, A. (2021) · Journal of Economic Behavior & Organization · doi:10.1016/j.jebo.2021.10.036 · Cited by 26
Complementarities in behavioral interventions: Evidence from a field experiment on resource conservation
Fang, X., Goette, L. F., Rockenbach, B., Sutter, M., Tiefenbeck, V., Schöb, S., & Staake, T. (2023) · Journal of Public Economics · doi:10.1016/j.jpubeco.2023.105028 · Cited by 26
Network Ecoinformatics: Development of a Social Ecofeedback System to Drive Energy Efficiency in Residential Buildings
Gulbinas, R., Jain, R. K., Taylor, J. E., Peschiera, G., & Golparvar‐Fard, M. (2013) · Journal of Computing in Civil Engineering · doi:10.1061/(asce)cp.1943-5487.0000319 · Cited by 26
Words speak louder: Conforming to preferences more than actions.
Tu, Y., & Fishbach, A. (2015) · Journal of Personality and Social Psychology · doi:10.1037/pspa0000031 · Cited by 27
“…2015, Vol. 109, No. 2, 193–209 © 2015 American Psychological Association 0022-3514/15/$12.00 http://dx.doi.org/10.1037/pspa0000031 193 mons, & Morales, 2010), environmental decisions (Allcott, 2011; Goldstein et al., 2008), and prosocial behaviors (Frey & Meier, 2004; Gerber & Rogers, 2009).”
Influential
An empirical study of spatial-temporal growth patterns of a voluntary residential green infrastructure program
Lim, T. C. (2017) · Journal of Environmental Planning and Management · doi:10.1080/09640568.2017.1350146 · Cited by 26
Nudging intrinsic motivation in environmental risk and social policy
Kácha, O., & Ruggeri, K. (2018) · Journal of Risk Research · doi:10.1080/13669877.2018.1459799 · Cited by 29
Perceived Social Consensus Can Reduce Ideological Biases on Climate Change
Goldberg, M. H., van der Linden, S., Leiserowitz, A., & Maibach, E. W. (2019) · Apollo (University of Cambridge) · doi:10.17863/cam.37992 · Cited by 26
Appeals to Social Norms and Taxpayer Compliance
Alm, J. R., Schulze, W. D., von Bose, C., & Yan, J. (2019) · Southern Economic Journal · doi:10.1002/soej.12374 · Cited by 32
Short- & long-term effects of monetary and non-monetary incentives to cooperate in public good games: An experiment
Lefèbvre, M., & Stenger, A. (2020) · PLoS ONE · doi:10.1371/journal.pone.0227360 · Cited by 27
“Identifying which channel is the driver of change, if any, is a difficult task, and there are several reasons why an incentive program could have long-lasting effects such as the updating of information [11–12], the adoption of new habits [13], new social norms [14], etc.”
Background
Designing Smart Energy Systems in an Industry 4.0 Paradigm towards Sustainable Environment
Morelli, G., Magazzino, C., Gurrieri, A. R., et al. (2022) · Sustainability · doi:10.3390/su14063315 · Cited by 26
Experimental and behavioral economics to inform agri-environmental programs and policies
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Rewiring the network. What helps an innovation to diffuse?
Sznajd-Weron, K., Szwabiński, J., Weron, R., & Weron, T. (2014) · Journal of Statistical Mechanics Theory and Experiment · doi:10.1088/1742-5468/2014/03/p03007 · Cited by 29
Targeting utility customers to improve energy savings from conservation and efficiency programs
Taylor, N. W., Jones, P. H., & Kipp, M. J. (2013) · Applied Energy · doi:10.1016/j.apenergy.2013.10.012 · Cited by 26
Using field experiments to address environmental externalities and resource scarcity: major lessons learned and new directions for future research
Price, M. (2014) · Oxford Review of Economic Policy · doi:10.1093/oxrep/grv002 · Cited by 26
Impact of household expenditures on CO2 emissions in China: Income-determined or lifestyle-driven?
Wang, Q., Liang, Q., Wang, B., et al. (2015) · Natural Hazards · doi:10.1007/s11069-015-2067-1 · Cited by 26
“…exploring the influencing factors of household emissions, including economic and non-economic factors (Chitnis and Hunt 2011, 2012), social norms (Allcott 2011), increased energy efficiency (Brannlund et al. 2007), energy intensity, structure, activity and population (Das and Paul 2014), and…”
Background
Insights From Behavioral Economics to Design More Effective Incentives for Improving Chronic Health Behaviors, With an Application to Adherence to Antiretrovirals
Linnemayr, S., & Rice, T. (2016) · JAIDS Journal of Acquired Immune Deficiency Syndromes · doi:10.1097/qai.0000000000000972 · Cited by 27
“In a series of programs across the United States, utility customers received letters comparing their energy consumption with that of their neighbors, which led to an electricity reduction of 2% or the equivalent of a price increase of 11%– 20%.(21) In the field of HIV, one of the authors is currently implementing an N…”
Background
Occupant workstation level energy-use prediction in commercial buildings: Developing and assessing a new method to enable targeted energy efficiency programs
Khosrowpour, A., Gulbinas, R., & Taylor, J. E. (2016) · Energy and Buildings · doi:10.1016/j.enbuild.2016.05.071 · Cited by 26
How Behavioral Economics and Nudges Could Help Diminish Irrationality in Suicide-Related Decisions
Bauer, B. W., & Capron, D. W. (2019) · Perspectives on Psychological Science · doi:10.1177/1745691619866463 · Cited by 26
“…industry, including retirement savings (Carroll, Choi, Laibson, Madrian, & Metrick, 2009), college enrollment (Bettinger, Long, Oreopoulos, & Sanbonmatsu, 2012), energy conservation (Allcott, 2011), and influenza vaccinations (Milkman, Beshears, Choi, Laibson, & Madrian, 2011), among many others.”
No Man is an Island: Social Coordination and the Environment
Nyborg, K. (2019) · Environmental and Resource Economics · doi:10.1007/s10640-020-00415-2 · Cited by 30
“…of Ostrom (1990) and her collaborators, environmental and resource economists have increasingly explored social interaction explicitly in their analyses (e.g., Rege 2004; Johansson-Stenman and Martinsson 2006; Allcott 2011; Dasgupta and Ehrlich 2013; Richter and Grasman 2013; Dasgupta et al.”
PREPAID ELECTRICITY PLAN AND ELECTRICITY CONSUMPTION BEHAVIOR
Qiu, Y. L., Xing, B., & Wang, Y. D. (2016) · Contemporary Economic Policy · doi:10.1111/coep.12170 · Cited by 28
“For example, Allcott (2011b) finds that behavioral interventions of providing home energy reports compared to peers can save energy consumption by about 2%.”
Responding to electricity shortfalls: Electricity-saving activities of households and firms in Japan after Fukushima
Kimura, O., & Nishio, K. (2016) · Economics of Energy and Environmental Policy · doi:10.5547/2160-5890.5.1.okim · Cited by 26
What Roles for Energy Cooperatives in the Diffusion of Distributed Generation Technologies?Preprint
Bauwens, T. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2382596 · Cited by 26
“Consistently, the classical instruments used to take into account environmental externalities are Pigouvian taxes, emission trading schemes and subsidies for energy-efficient assets (Allcott, 2011).”
Background
The effects of policy announcement, prices and subsidies on water consumption
Agarwal, S. D., Araral, E., Fan, M., Qin, Y., & Zheng, H. (2023) · Nature Water · doi:10.1038/s44221-023-00028-1 · Cited by 28
Behavioral interventions for waste reduction: a systematic review of experimental studies
Wilson, B. M., Delmas, M. A., & Rajagopal, D. (2025) · Frontiers in Psychology · doi:10.3389/fpsyg.2025.1561467 · Cited by 31
“Many of these studies tested variations of the seminal work by Schultz et al. (2007) and Allcott (2011) wherein households are given information about how their electricity or water usage compares to their neighbors’ usage.”
Community-based incentives for environmental protection: the case of green electricity
Jacobsen, G. D., Kotchen, M. J., & Clendenning, G. (2013) · Journal of Regulatory Economics · doi:10.1007/s11149-013-9213-z · Cited by 25
“Allcott (2011) and Ayres et al. (2009) show that social comparisons through home energy reports on utility bills can promote conservation.”
Background
One for all? – The impact of different types of energy feedback and goal setting on individuals’ motivation to conserve electricity
Brandsma, J. S., & Blasch, J. (2019) · Energy Policy · doi:10.1016/j.enpol.2019.110992 · Cited by 25
All by Myself? Testing Descriptive Social Norm-Nudges to Increase Flood Preparedness among Homeowners
Mol, J. M., Botzen, W. J. W., Blasch, J., Kranzler, E. C., & Kunreuther, H. C. (2020) · Behavioural Public Policy · doi:10.1017/bpp.2021.17 · Cited by 30
Impact of social comparison on preferences for Demand Side Management in Poland
Gołębiowska, B., Bartczak, A., & Budziński, W. (2021) · Energy Policy · doi:10.1016/j.enpol.2020.112024 · Cited by 22
Is less always more? Conservation, efficiency and water education programs
Wang, J., & Chermak, J. M. (2021) · Ecological Economics · doi:10.1016/j.ecolecon.2021.106994 · Cited by 25

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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