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Social comparison and energy conservation in a collective action context: A field experiment

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  • Kandul, Serhiy
  • Lang, Ghislaine
  • Lanz, Bruno

Abstract

This field experiment quantifies the impact of social norm information on the demand for indoor temperature. Based on high-frequency data from indoor temperature monitors, we provide participating households with a comparison of average temperature in their apartment relative to that measured in a control group. For more than 90 percent of participants, financial benefits of energy savings are only indirect, as building-level heating costs are shared across apartments in proportion to their volume. Despite the associated collective action problem, we estimate that the intervention induces a −0.28 °C reduction in average indoor temperature. This suggests that direct monetary incentives is not a pre-requisite for social comparison feedback to induce energy savings.

Suggested Citation

  • Kandul, Serhiy & Lang, Ghislaine & Lanz, Bruno, 2020. "Social comparison and energy conservation in a collective action context: A field experiment," Economics Letters, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176520300045
    DOI: 10.1016/j.econlet.2020.108947
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    References listed on IDEAS

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    1. Dora L. Costa & Matthew E. Kahn, 2013. "Energy Conservation “Nudges” And Environmentalist Ideology: Evidence From A Randomized Residential Electricity Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 680-702, June.
    2. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    3. Cristina Bicchieri & Eugen Dimant, 2022. "Nudging with care: the risks and benefits of social information," Public Choice, Springer, vol. 191(3), pages 443-464, June.
    4. Hunt Allcott & Todd Rogers, 2014. "The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation," American Economic Review, American Economic Association, vol. 104(10), pages 3003-3037, October.
    5. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    6. Paul J. Ferraro & Juan Jose Miranda & Michael K. Price, 2011. "The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 318-322, May.
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    Citations

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    Cited by:

    1. Sun, Yuzhe & Zhang, Shunming, 2023. "Social comparison with ambiguity: An investment and consumption game," Economics Letters, Elsevier, vol. 230(C).
    2. Kanwal, Saira & Mehran, Muhammad Taqi & Hassan, Muhammad & Anwar, Mustafa & Naqvi, Salman Raza & Khoja, Asif Hussain, 2022. "An integrated future approach for the energy security of Pakistan: Replacement of fossil fuels with syngas for better environment and socio-economic development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    3. Rebecca Afua Klege & Martine Visser & Saugato Datta & Matthew Darling, 2022. "The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non-residential Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 573-589, March.
    4. Gołębiowska, Bernadeta & Bartczak, Anna & Budziński, Wiktor, 2021. "Impact of social comparison on preferences for Demand Side Management in Poland," Energy Policy, Elsevier, vol. 149(C).
    5. Ukasha Ramli, 2021. "Social Norms Based Eco-Feedback for Household Water Consumption," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    6. Spandagos, Constantine & Baark, Erik & Ng, Tze Ling & Yarime, Masaru, 2021. "Social influence and economic intervention policies to save energy at home: Critical questions for the new decade and evidence from air-condition use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    7. Lang, Ghislaine & Lanz, Bruno, 2022. "Climate policy without a price signal: Evidence on the implicit carbon price of energy efficiency in buildings," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    8. Spandagos, Constantine & Yarime, Masaru & Baark, Erik & Ng, Tze Ling, 2020. "“Triple Target” policy framework to influence household energy behavior: Satisfy, strengthen, include," Applied Energy, Elsevier, vol. 269(C).

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    More about this item

    Keywords

    Informational intervention; Monetary incentives; Energy saving; Social comparison feedback; Social norms;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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