Social norms and energy conservation

Hunt Allcott

    Research output: Contribution to journalArticlepeer-review

    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.

    Original languageEnglish (US)
    Pages (from-to)1082-1095
    Number of pages14
    JournalJournal of Public Economics
    Volume95
    Issue number9-10
    DOIs
    StatePublished - Oct 2011

    Keywords

    • Energy demand
    • Randomized field experiments
    • Social norms

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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