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Harnessing Policy Complementarities to Conserve Energy: Evidence from a Natural Field Experiment
List, John ; Metcalfe, Robert ; Price, Michael ; Rundhammer, Florian
List, John
Metcalfe, Robert
Price, Michael
Rundhammer, Florian
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Abstract
The literature has shown the power of social norms to promote residential energy conservation, particularly among high usage users. This study uses a natural field experiment with nearly 200,000 US households to explore whether a financial rewards program can complement such approaches. We observe strong impacts of the program, particularly amongst low-usage and lowvariance households, customers who typically are less responsive to normative messaging. Our data thus suggest important policy complementarities between behavioral and financial incentives: whereas non-pecuniary interventions disproportionately affect intense users, financial incentives are able to substantially affect the low-user, “sticky households.”
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To learn more about the Andrew Young School of Policy Studies and ExCEN Working Papers Series, visit https://aysps.gsu.edu/ and http://excen.gsu.edu/center/.
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2017-02-01
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Keywords
social norms, financial incentives, energy conservation, field
experiment.
