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Mental accounting mechanisms in energy decision-making and behaviour

Author

Listed:
  • Ulf J. J. Hahnel

    (University of Geneva)

  • Gilles Chatelain

    (University of Geneva)

  • Beatrice Conte

    (University of Geneva)

  • Valentino Piana

    (University of Applied Sciences and Arts Western Switzerland)

  • Tobias Brosch

    (University of Geneva)

Abstract

Mental accounting refers to the fact that people create mental budgets to organize their resource use and to create linkages between specific acts of consumption and specific payments. Research on financial decision-making and consumer behaviour shows that these mechanisms can have a large impact on decisions and behaviours, deviating from normative economic principles. Here we introduce a theoretical framework illustrating how mental accounting mechanisms may influence individual decisions and behaviours driving energy consumption and carbon emissions. We demonstrate the practical relevance of mental accounting in the context of designing carbon pricing mechanisms and discuss the ethical dimensions of applying the concept to intervention design. By bridging the mental accounting literature and research in the energy domain, we aim to stimulate the study of the cognitive mechanisms underlying energy-relevant decisions and the development of novel theory-based interventions targeting reductions of energy use and carbon emissions.

Suggested Citation

  • Ulf J. J. Hahnel & Gilles Chatelain & Beatrice Conte & Valentino Piana & Tobias Brosch, 2020. "Mental accounting mechanisms in energy decision-making and behaviour," Nature Energy, Nature, vol. 5(12), pages 952-958, December.
    • Handle: RePEc:nat:natene:v:5:y:2020:i:12:d:10.1038_s41560-020-00704-6
    DOI: 10.1038/s41560-020-00704-6
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    Cited by:

    1. Lagomarsino, Maria & van der Kam, Mart & Parra, David & Hahnel, Ulf J.J., 2022. "Do I need to charge right now? Tailored choice architecture design can increase preferences for electric vehicle smart charging," Energy Policy, Elsevier, vol. 162(C).
    2. Ana Salomé García-Muñiz & María Rosalía Vicente, 2021. "The Effects of Informational Feedback on the Energy Consumption of Online Services: Some Evidence for the European Union," Energies, MDPI, vol. 14(10), pages 1-14, May.
    3. Johan Warburg & Britta Frommeyer & Julia Koch & Sven‐Olaf Gerdt & Gerhard Schewe, 2021. "Voluntary carbon offsetting and consumer choices for environmentally critical products—An experimental study," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3009-3024, November.
    4. Gustafsson, Peter & Nilsson, Peter & David, Lucinda & Marañon, Antonia, 2021. "Framing energy choices in consumer decision-making Evidence from a random experiment in Sweden," Papers in Innovation Studies 2021/14, Lund University, CIRCLE - Centre for Innovation Research.

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