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Switching Off: Energy Saving Goals Outshine Incentives—Evidence from a Field Experiment

Author

Listed:
  • Natalia Borzino

    (ETH Zurich)

  • Benjamin Hiepler

    (Radboud University)

  • Kathrin Schmitt
  • Jan Schmitz

    (Radboud University)

  • Renate Schubert

    (ETH Zurich)

  • Verena Tiefenbeck

    (FAU Erlangen-Nuremberg)

Abstract

Feedback interventions are a promising tool for promoting household energy conservation and addressing climate change. This study examines whether their effectiveness improves with incentivized energy saving goals through a field experiment involving 422 Singaporean households over eight months. All treatment groups received tailored feedback reports, energy saving goals, and tips. Two groups also received additional incentives: monetary rewards or environmental donations. Households receiving only feedback, goals and savings tips reduced electricity use by 16% compared to the control group, but those offered additional monetary or environmental incentives achieved no further savings. Notabl the effects persisted marginally post-intervention in the goal treatment. These results indicate that low-cost behavioral strategies like feedback, savings tips and goal setting can be as effective as costly incentives, providing a scalable and economical pathway for energy conservation initiatives.

Suggested Citation

  • Natalia Borzino & Benjamin Hiepler & Kathrin Schmitt & Jan Schmitz & Renate Schubert & Verena Tiefenbeck, 2025. "Switching Off: Energy Saving Goals Outshine Incentives—Evidence from a Field Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(6), pages 1499-1540, June.
    • Handle: RePEc:kap:enreec:v:88:y:2025:i:6:d:10.1007_s10640-025-00973-3
    DOI: 10.1007/s10640-025-00973-3
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    More about this item

    Keywords

    Energy conservation; Incentives; Feedback; Goal-setting; Field experiment;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • 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

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