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Financial and Non-Financial Incentives, and the Crowding-Out Effect: Evidence from a Field Experiment on Residential Electricity Consumption in Switzerland

Author

Listed:
  • Valentin Favre-Bulle
  • Sylvain Weber

Abstract

We examine the impact of monetary and non-monetary incentives, individually and combined, on residential electricity consumption. A field experiment in Switzerland provided all participants with access to a custom-developed app offering feedback on electricity use and energy-saving tips. In addition to the control group, one treatment group received social comparisons based on savings relative to similar households, while a second group additionally received financial rewards linked to their electricity savings. We find no strong evidence of treatment effects. We do not observe crowding-out effect from combining monetary and non-monetary incentives, as the difference between treatments is not significant. Treatment effects appear to differ between PV and non-PV owners, with some indication of greater effectiveness for the latter, though further research is needed. Compared to a non-participant group, participation in the experiment and use of the application marginally reduced electricity consumption.

Suggested Citation

  • Valentin Favre-Bulle & Sylvain Weber, 2026. "Financial and Non-Financial Incentives, and the Crowding-Out Effect: Evidence from a Field Experiment on Residential Electricity Consumption in Switzerland," IRENE Working Papers 26-04, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:26-04
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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