IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v71y2018icp403-410.html

Information provision and energy consumption: Evidence from a field experiment

Author

Listed:
  • Aydin, Erdal
  • Brounen, Dirk
  • Kok, Nils

Abstract

Energy consumption and the residential real estate market are closely related, leading to a multitude of policy interventions targeted to reduce the carbon externality from the housing market. Feedback provision regarding household energy consumption is considered a low-cost strategy for promoting energy conservation. Although various studies investigate the impact of information feedback on energy consumption, less is known about the heterogeneity of these responses. In this paper, we report the findings from a field experiment where participants are exposed to consumption feedback through the use of in-home displays during two discrete stages. The results show that information provision reduces electricity consumption by around 20%, on average, relative to a sample of non-treated households. Importantly, we also show that this average effect significantly differs based on the time of day and across the treatment group. Most of the feedback effect occurs during off-peak hours, and clusters among households that are older and that are most focused on energy conservation.

Suggested Citation

  • Aydin, Erdal & Brounen, Dirk & Kok, Nils, 2018. "Information provision and energy consumption: Evidence from a field experiment," Energy Economics, Elsevier, vol. 71(C), pages 403-410.
  • Handle: RePEc:eee:eneeco:v:71:y:2018:i:c:p:403-410
    DOI: 10.1016/j.eneco.2018.03.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988318300896
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2018.03.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Lynham, John & Nitta, Kohei & Saijo, Tatsuyoshi & Tarui, Nori, 2016. "Why does real-time information reduce energy consumption?," Energy Economics, Elsevier, vol. 54(C), pages 173-181.
    2. Faruqui, Ahmad & Sergici, Sanem & Sharif, Ahmed, 2010. "The impact of informational feedback on energy consumption—A survey of the experimental evidence," Energy, Elsevier, vol. 35(4), pages 1598-1608.
    3. Kopsakangas Savolainen, Maria & Svento, Rauli, 2012. "Real-Time Pricing in the Nordic Power markets," Energy Economics, Elsevier, vol. 34(4), pages 1131-1142.
    4. Schultz, P. Wesley & Estrada, Mica & Schmitt, Joseph & Sokoloski, Rebecca & Silva-Send, Nilmini, 2015. "Using in-home displays to provide smart meter feedback about household electricity consumption: A randomized control trial comparing kilowatts, cost, and social norms," Energy, Elsevier, vol. 90(P1), pages 351-358.
    5. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    6. Erdal Aydin & Nils Kok & Dirk Brounen, 2017. "Energy efficiency and household behavior: the rebound effect in the residential sector," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 749-782, August.
    7. Katrina Jessoe & David Rapson, 2014. "Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use," American Economic Review, American Economic Association, vol. 104(4), pages 1417-1438, April.
    8. Paul L. Joskow, 2012. "Creating a Smarter U.S. Electricity Grid," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 29-48, Winter.
    9. repec:aen:journl:2004v25-01-a01 is not listed on IDEAS
    10. Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, December.
    11. Paul L. Joskow & Catherine D. Wolfram, 2012. "Dynamic Pricing of Electricity," American Economic Review, American Economic Association, vol. 102(3), pages 381-385, May.
    12. Carroll, James & Lyons, Seán & Denny, Eleanor, 2014. "Reducing household electricity demand through smart metering: The role of improved information about energy saving," Energy Economics, Elsevier, vol. 45(C), pages 234-243.
    13. Allcott, Hunt, 2011. "Rethinking real-time electricity pricing," Resource and Energy Economics, Elsevier, vol. 33(4), pages 820-842.
    14. Brounen, Dirk & Kok, Nils & Quigley, John M., 2013. "Energy literacy, awareness, and conservation behavior of residential households," Energy Economics, Elsevier, vol. 38(C), pages 42-50.
    15. 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.
    16. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    17. repec:aen:journl:ej34-1-04 is not listed on IDEAS
    18. Gans, Will & Alberini, Anna & Longo, Alberto, 2013. "Smart meter devices and the effect of feedback on residential electricity consumption: Evidence from a natural experiment in Northern Ireland," Energy Economics, Elsevier, vol. 36(C), pages 729-743.
    19. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ramos, A. & Gago, A. & Labandeira, X. & Linares, P., 2015. "The role of information for energy efficiency in the residential sector," Energy Economics, Elsevier, vol. 52(S1), pages 17-29.
    2. Ruokamo, Enni & Meriläinen, Teemu & Karhinen, Santtu & Räihä, Jouni & Suur-Uski, Päivi & Timonen, Leila & Svento, Rauli, 2022. "The effect of information nudges on energy saving: Observations from a randomized field experiment in Finland," Energy Policy, Elsevier, vol. 161(C).
    3. Iztok Podbregar & Sanja Filipović & Mirjana Radovanović & Olga Mirković Isaeva & Polona Šprajc, 2021. "Electricity Prices and Consumer Behavior, Case Study Serbia—Randomized Control Trials Method," Energies, MDPI, vol. 14(3), pages 1-12, January.
    4. Weber, Sylvain & Puddu, Stefano & Pacheco, Diana, 2017. "Move it! How an electric contest motivates households to shift their load profile," Energy Economics, Elsevier, vol. 68(C), pages 255-270.
    5. Chen, Victor L. & Delmas, Magali A. & Locke, Stephen L. & Singh, Amarjeet, 2017. "Information strategies for energy conservation: A field experiment in India," Energy Economics, Elsevier, vol. 68(C), pages 215-227.
    6. Batalla-Bejerano, Joan & Trujillo-Baute, Elisa & Villa-Arrieta, Manuel, 2020. "Smart meters and consumer behaviour: Insights from the empirical literature," Energy Policy, Elsevier, vol. 144(C).
    7. Boomsma, Mirthe & Vringer, Kees & Soest, Daan van, 2025. "The impact of real-time energy consumption feedback on residential gas and electricity usage," Journal of Environmental Economics and Management, Elsevier, vol. 132(C).
    8. Buckley, Penelope, 2020. "Prices, information and nudges for residential electricity conservation: A meta-analysis," Ecological Economics, Elsevier, vol. 172(C).
    9. Khosrowpour, Ardalan & Jain, Rishee K. & Taylor, John E. & Peschiera, Gabriel & Chen, Jiayu & Gulbinas, Rimas, 2018. "A review of occupant energy feedback research: Opportunities for methodological fusion at the intersection of experimentation, analytics, surveys and simulation," Applied Energy, Elsevier, vol. 218(C), pages 304-316.
    10. Martin Paschmann & Simon Paulus, 2017. "The Impact of Advanced Metering Infrastructure on Residential Electricity Consumption - Evidence from California," EWI Working Papers 2017-8, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    11. d'Adda, Giovanna & Galliera, Arianna & Tavoni, Massimo, 2020. "Urgency and engagement: Empirical evidence from a large-scale intervention on energy use awareness," Journal of Economic Psychology, Elsevier, vol. 81(C).
    12. Iwafune, Yumiko & Mori, Yuko & Kawai, Toshiaki & Yagita, Yoshie, 2017. "Energy-saving effect of automatic home energy report utilizing home energy management system data in Japan," Energy, Elsevier, vol. 125(C), pages 382-392.
    13. Cardella, Eric & Ewing, Brad & Williams, Ryan Blake, "undated". "Green is Good – The Impact of Information Nudges on the Adoption of Voluntary Green Power Plans," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266583, Southern Agricultural Economics Association.
    14. Stefano Ceolotto & Eleanor Denny, 2021. "Putting a new 'spin' on energy labels: measuring the impact of reframing energy efficiency on tumble dryer choices in a multi-country experiment," Trinity Economics Papers tep1521, Trinity College Dublin, Department of Economics.
    15. repec:aen:eeepjl:eeep5-1-ida is not listed on IDEAS
    16. S. Ceolotto & E. Denny, 2024. "Putting a New ‘Spin’ on Energy Information: Measuring the Impact of Reframing Energy Efficiency Information on Tumble Dryer Choices in a Multi-country Experiment," Journal of Consumer Policy, Springer, vol. 47(1), pages 51-108, March.
    17. repec:rza:wpaper:763 is not listed on IDEAS
    18. Asmare, Fissha & Jaraitė, Jūratė & Kažukauskas, Andrius, 2021. "The effect of descriptive information provision on electricity consumption: Experimental evidence from Lithuania," Energy Economics, Elsevier, vol. 104(C).
    19. Ben-Haim, Yakov, 2021. "Feedback for energy conservation: An info-gap approach," Energy, Elsevier, vol. 223(C).
    20. Ahir, Rajesh K. & Chakraborty, Basab, 2021. "A meta-analytic approach for determining the success factors for energy conservation," Energy, Elsevier, vol. 230(C).
    21. Somasundaram, Jeeva & Koch, Ingrid & Lim, Noah, 2023. "Raising the AC temperature in the tropics, one degree at a time," Energy Economics, Elsevier, vol. 128(C).
    22. 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.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:71:y:2018:i:c:p:403-410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.