IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v63y2013icp775-787.html
   My bibliography  Save this article

The influences of financial and non-financial factors on energy-saving behaviour: A field experiment in Japan

Author

Listed:
  • Mizobuchi, Kenichi
  • Takeuchi, Kenji

Abstract

This study examines the influences of financial and non-financial factors on electricity-conservation behaviour. A random sample of 236 Japanese households participated in the field experiment and the participants were offered two interventions, such as monetary rewards, depending on their reduction in electricity consumption and comparative feedback. The average saving rates of the (i) reward-intervention group (5.9%) and the (ii) reward with comparative feedback group (8.2%) are statistically larger than those of the (iii) control group (1.7%). Our study demonstrates the following. First, our econometric analysis confirmed a significant response by households to financial incentives but a more inconclusive response to the treatment that provided non-financial, additional information. Second, we found a positive influence of treatment externalities across time and households on energy saving. Third, there is a heterogeneous treatment effect in the reward-intervention group, with the households having a high New Ecological Paradigm (NEP) score being more likely to respond to the reward programme and save electricity than those that do not. Finally, and most interestingly, differences in responses to the questionnaire before and after the experiment suggest that the participants had underestimated the marginal costs of saving electricity before they actually started to do so.

Suggested Citation

  • Mizobuchi, Kenichi & Takeuchi, Kenji, 2013. "The influences of financial and non-financial factors on energy-saving behaviour: A field experiment in Japan," Energy Policy, Elsevier, vol. 63(C), pages 775-787.
  • Handle: RePEc:eee:enepol:v:63:y:2013:i:c:p:775-787
    DOI: 10.1016/j.enpol.2013.08.064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513008689
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2006. "Green consumers and public policy: On socially contingent moral motivation," Resource and Energy Economics, Elsevier, vol. 28(4), pages 351-366, November.
    2. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    3. McConnell, K. E., 1997. "Does Altruism Undermine Existence Value?," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 22-37, January.
    4. Espey, James A. & Espey, Molly, 2004. "Turning on the Lights: A Meta-Analysis of Residential Electricity Demand Elasticities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
    5. Hunt Allcott, 2011. "Consumers' Perceptions and Misperceptions of Energy Costs," American Economic Review, American Economic Association, vol. 101(3), pages 98-104, May.
    6. Ek, Kristina & Söderholm, Patrik, 2008. "Norms and economic motivation in the Swedish green electricity market," Ecological Economics, Elsevier, vol. 68(1-2), pages 169-182, December.
    7. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    8. Vaage, Kjell, 2000. "Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand," Energy Economics, Elsevier, vol. 22(6), pages 649-666, December.
    9. Silk, Julian I. & Joutz, Frederick L., 1997. "Short and long-run elasticities in US residential electricity demand: a co-integration approach," Energy Economics, Elsevier, vol. 19(4), pages 493-513, October.
    10. Munshi, Kaivan & Myaux, Jacques, 2006. "Social norms and the fertility transition," Journal of Development Economics, Elsevier, vol. 80(1), pages 1-38, June.
    11. Midden, Cees J. H. & Meter, Joanne F. & Weenig, Mieneke H. & Zieverink, Henk J. A., 1983. "Using feedback, reinforcement and information to reduce energy consumption in households: A field-experiment," Journal of Economic Psychology, Elsevier, vol. 3(1), pages 65-86.
    12. 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.
    13. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    14. Halvorsen, Bente & Larsen, Bodil M., 2001. "The flexibility of household electricity demand over time," Resource and Energy Economics, Elsevier, vol. 23(1), pages 1-18, January.
    15. Hongbin Cai & Yuyu Chen & Hanming Fang, 2009. "Observational Learning: Evidence from a Randomized Natural Field Experiment," American Economic Review, American Economic Association, vol. 99(3), pages 864-882, June.
    16. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    17. McCalley, L. T. & Midden, Cees J. H., 2002. "Energy conservation through product-integrated feedback: The roles of goal-setting and social orientation," Journal of Economic Psychology, Elsevier, vol. 23(5), pages 589-603, October.
    18. Dean Karlan & Markus M. Möbius & Tanya S. Rosenblat & Adam Szeidl & Hunt Allcott, 2007. "Community Size and Network Closure," American Economic Review, American Economic Association, vol. 97(2), pages 80-85, May.
    19. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    20. Katzev, Richard D. & Johnson, Theodore R., 1983. "A social-psychological analysis of residential electricity consumption: the impact of minimal justification techniques," Journal of Economic Psychology, Elsevier, vol. 3(3-4), pages 267-284, September.
    21. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    22. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    23. Poortinga, Wouter & Steg, Linda & Vlek, Charles & Wiersma, Gerwin, 2003. "Household preferences for energy-saving measures: A conjoint analysis," Journal of Economic Psychology, Elsevier, vol. 24(1), pages 49-64, February.
    24. Isamu Matsukawa, 2004. "The Effects of Information on Residential Demand for Electricity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-18.
    25. Ek, Kristina & Söderholm, Patrik, 2010. "The devil is in the details: Household electricity saving behavior and the role of information," Energy Policy, Elsevier, vol. 38(3), pages 1578-1587, March.
    26. Sardianou, Eleni, 2007. "Estimating energy conservation patterns of Greek households," Energy Policy, Elsevier, vol. 35(7), pages 3778-3791, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hara, Keishiro & Uwasu, Michinori & Kishita, Yusuke & Takeda, Hiroyuki, 2015. "Determinant factors of residential consumption and perception of energy conservation: Time-series analysis by large-scale questionnaire in Suita, Japan," Energy Policy, Elsevier, vol. 87(C), pages 240-249.
    2. Belaïd, Fateh & Garcia, Thomas, 2016. "Understanding the spectrum of residential energy-saving behaviours: French evidence using disaggregated data," Energy Economics, Elsevier, vol. 57(C), pages 204-214.
    3. Stenner, Karen & Frederiks, Elisha R. & Hobman, Elizabeth V. & Cook, Stephanie, 2017. "Willingness to participate in direct load control: The role of consumer distrust," Applied Energy, Elsevier, vol. 189(C), pages 76-88.
    4. Shen, Meng & Cui, Qingbin & Fu, Liping, 2015. "Personality traits and energy conservation," Energy Policy, Elsevier, vol. 85(C), pages 322-334.
    5. Bradley, Peter & Coke, Alexia & Leach, Matthew, 2016. "Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider," Energy Policy, Elsevier, vol. 98(C), pages 108-120.
    6. Jaime Torres, Mónica Marcela & Carlsson, Fredrik, 2016. "Social Norms and Information Diffusion in Water-saving Programs: Evidence from a Randomized Field Experiment in Colombia," Working Papers in Economics 652, University of Gothenburg, Department of Economics.
    7. Khanna, Nina Zheng & Guo, Jin & Zheng, Xinye, 2016. "Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey," Energy Policy, Elsevier, vol. 95(C), pages 113-125.
    8. Al-Shemmeri, Tarik & Naylor, Lucy, 2017. "Energy saving in UK FE colleges: The relative importance of the socio-economic groups and environmental attitudes of employees," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1130-1143.
    9. Zhou, Kaile & Yang, Shanlin, 2016. "Understanding household energy consumption behavior: The contribution of energy big data analytics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 810-819.
    10. Shen, Meng & Young, Robert & Cui, Qingbin, 2016. "The normative feedback approach for energy conservation behavior in the military community," Energy Policy, Elsevier, vol. 98(C), pages 19-32.
    11. Schall, Dominik L. & Mohnen, Alwine, 2017. "Incentivizing energy-efficient behavior at work: An empirical investigation using a natural field experiment on eco-driving," Applied Energy, Elsevier, vol. 185(P2), pages 1757-1768.
    12. repec:eco:journ2:2017-06-10 is not listed on IDEAS

    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:enepol:v:63:y:2013:i:c:p:775-787. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.