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An experimental test of the effect of negative social norms on energy-efficient investments

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  • Yeomans, Mike
  • Herberich, David

Abstract

Energy efficiency is an important economic and environmental concern, and likewise the correction of current wasteful energy practices. We document widespread “tire pressure neglect” – three-quarters of drivers waste gas driving on underinflated tires. Negative descriptive social norms are one potential cause, but have not been tested in high-neglect environments, where those norms are widespread. This confounds the mechanism: are these norms signals of private value to consumers, or do they imply standards for social judgment from others? We conducted a field experiment at gas stations in Chicago – our intervention included treatments with information about tire pressure neglect, promotions in the form of price reductions from $0.50 to free, a descriptive norm of behavior, and “help” in the form of air pump assistance. The treatments are designed to provide the ability to consider four potential underlying drivers: information, monetary cost, social norms and social pressure. Treatments that only included information were ineffective, despite average fuel savings of $10.51, but small promotions had substantial impacts. When the air pump price was free, the social norm discouraged inflation. However, when the research assistant offered help, inflation rates were buoyed by the social norm. These results highlight the importance of incentives over mere information treatments, and offer a new perspective on how information and monetary levers can influence decision-making in the presence of negative social norms.

Suggested Citation

  • Yeomans, Mike & Herberich, David, 2014. "An experimental test of the effect of negative social norms on energy-efficient investments," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 187-197.
  • Handle: RePEc:eee:jeborg:v:108:y:2014:i:c:p:187-197
    DOI: 10.1016/j.jebo.2014.09.010
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    2. Guy Meunier & Ingmar Schumacher, 2020. "The importance of considering optimal government policy when social norms matter for the private provision of public goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 630-655, June.
    3. Grilli, Gianluca & Curtis, John, 2021. "Encouraging pro-environmental behaviours: A review of methods and approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    4. Derksen, Laura & Muula, Adamson & van Oosterhout, Joep, 2022. "Love in the time of HIV: How beliefs about externalities impact health behavior," Journal of Development Economics, Elsevier, vol. 159(C).
    5. KUROKAWA Hirofumi & IGEI Kengo & KITSUKI Akinori & KURITA Kenichi & MANAGI Shunsuke & NAKAMURO Makiko & SAKANO Akira, 2022. "Nudges to Increase the Effectiveness of Environmental Education," Discussion papers 22047, Research Institute of Economy, Trade and Industry (RIETI).
    6. Eiji Yamamura, 2021. "The Effect of Providing Peer Information on Evaluation for Gender Equalized and ESG Oriented Firms: An Internet Survey Experiment," Papers 2105.12292, arXiv.org.
    7. James M. Leonhardt & David Trafimow & Mihai Niculescu, 2017. "Selecting Field Experiment Locations with Archival Data," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 448-462, July.
    8. Farrow, Katherine & Grolleau, Gilles & Ibanez, Lisette, 2017. "Social Norms and Pro-environmental Behavior: A Review of the Evidence," Ecological Economics, Elsevier, vol. 140(C), pages 1-13.
    9. Matsukawa, Isamu, 2018. "Information acquisition and residential electricity consumption: Evidence from a field experiment," Resource and Energy Economics, Elsevier, vol. 53(C), pages 1-19.
    10. Jakub Zawieska & Hanna Obracht-Prondzyńska & Ewa Duda & Danuta Uryga & Małgorzata Romanowska, 2022. "In Search of the Innovative Digital Solutions Enhancing Social Pro-Environmental Engagement," Energies, MDPI, vol. 15(14), pages 1-18, July.

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    More about this item

    Keywords

    Tire pressure; Fuel economy; Energy conservation; Consumer behavior; Social norms; Field experiment;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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