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Tailored interventions in a major life decision: A home relocation discrete choice experiment

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  • Velvart, Joëlle

    (University of Basel)

  • Dato, Prudence

    (University of Basel)

  • Kuhlmey, Florian

    (University of Basel)

Abstract

Major life decisions such as the choice of housing and its characteristics have significant implications for a household and its energy consumption because they alter structural aspects of energy demand. Energy policy interventions targeting these decisions can therefore have a long-lasting impact. To assess non-monetary policy instruments as incentives for energy-conserving housing choices we implement a discrete choice experiment with a representative sample of Swiss households. The purpose of this paper is the investigation of behavioural differences across households in reaction to social norms and energy-related information. To this end, we distinguish different types of households with a segmentation approach useful for policy makers. Our study provides insights for the question whether the tailoring of non-monetary measures can contribute to a more effective policy design compared to a one-size-fits-all approach. Estimating panel mixed logit models, we find treatment effects to significantly differ across household segments as well as with the baseline energy consumption. The evident treatment heterogeneity suggests a targeted approach for non-monetary interventions.

Suggested Citation

  • Velvart, Joëlle & Dato, Prudence & Kuhlmey, Florian, 2022. "Tailored interventions in a major life decision: A home relocation discrete choice experiment," Working papers 2022/03, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2022/03
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    More about this item

    Keywords

    Housing choice; household heterogeneity; non-monetary incentives; social norms; energy literacy;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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