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Urgency and engagement: Empirical evidence from a large-scale intervention on energy use awareness

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  • d'Adda, Giovanna
  • Galliera, Arianna
  • Tavoni, Massimo

Abstract

We study how to foster engagement in the energy sector, where signals about consumption are opaque and infrequent. We evaluate an energy company's large-scale communication campaign for promoting natural gas self-reading. Self-readings allow utilities to bill customers on the basis of real - as opposed to estimated - consumption. Exploiting variation in campaign messages, we test the impact of imposing a sense of urgency on customers through a deadline for submitting a meter reading. We find that messages that induce a sense of urgency are twice as effective than generic messages in encouraging self-readings, consistent with recent research on the urgency effect. The increased sense of urgency moves to action customers with both high and low levels of baseline engagement; the effect is stronger on the former.

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  • 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).
  • Handle: RePEc:eee:joepsy:v:81:y:2020:i:c:s0167487020300325
    DOI: 10.1016/j.joep.2020.102275
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    Cited by:

    1. Mauro Papi, 2022. "‘What is important is seldom urgent and what is urgent is seldom important’: a study of the strategic implications of the urgency effect in a competitive setting," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(2), pages 313-332, October.

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    More about this item

    Keywords

    Consumer behavior; Information; Urgency; Gas consumption; Engagement;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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