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Can self-set goals encourage resource conservation? Field experimental evidence from a smartphone app

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  • Löschel, Andreas
  • Rodemeier, Matthias
  • Werthschulte, Madeline

Abstract

This study leverages a large RCT to examine the potential of goal-setting nudges to encourage resource conservation at scale. We randomize a feature that allows subjects to set themselves energy consumption targets in a popular smartphone app. We document negative effects of the nudge on app utilization and estimate null effects on energy consumption with confidence intervals that rule out estimates from observational studies. A complementary survey identifies the mechanisms underlying these behavioral responses. Using a structural model and random variation of the app’s price, we estimate that the average user is willing to pay 7.41 EUR to avoid the nudge.

Suggested Citation

  • Löschel, Andreas & Rodemeier, Matthias & Werthschulte, Madeline, 2023. "Can self-set goals encourage resource conservation? Field experimental evidence from a smartphone app," European Economic Review, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:eecrev:v:160:y:2023:i:c:s0014292123002404
    DOI: 10.1016/j.euroecorev.2023.104612
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    More about this item

    Keywords

    Nudging; Goal setting; Field experiments; Scalability; Energy; Behavioral welfare economics; Smartphones;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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