The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation
AbstractWe document three remarkable features of the Opower program, in which social comparison- based home energy reports are repeatedly mailed to more than six million households nationwide. First, initial reports cause high-frequency “action and backsliding,” but these cycles attenuate over time. Second, if reports are discontinued after two years, effects are relatively persistent, decaying at 10-20 percent per year. Third, consumers are slow to habituate: they continue to respond to repeated treatment even after two years. We show that the previous conservative assumptions about post-intervention persistence had dramatically understated cost effectiveness and illustrate how empirical estimates can optimize program design.
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Date of creation: Oct 2012
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Find related papers by JEL classification:
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-ENE-2012-11-03 (Energy Economics)
- NEP-EVO-2012-11-03 (Evolutionary Economics)
- NEP-EXP-2012-11-03 (Experimental Economics)
- NEP-REG-2012-11-03 (Regulation)
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- Allcott, Hunt & Rogers, Todd T, 2012. "How Long Do Treatment Effects Last? Persistence and Durability of a Descriptive Norms Intervention's Effect on Energy Conservation," Scholarly Articles 9804492, Harvard Kennedy School of Government.
- Allcott, Hunt & Rogers, Todd, 2012. "How Long Do Treatment Effects Last? Persistence and Durability of a Descriptive Norms Intervention's Effect on Energy Conservation," Working Paper Series rwp12-045, Harvard University, John F. Kennedy School of Government.
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CEP Discussion Papers
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Research Papers in Economics
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