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Do energy-saving nudges deliver during high-price periods? Field experimental evidence from the European energy crisis

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Listed:
  • Tinnefeld, Vicky
  • Kesternich, Martin
  • Werthschulte, Madeline

Abstract

Urged by the European Energy Crisis and the threatening consequences of severe natural gas shortages, energy providers launched gas-saving initiatives incorporating financial incentives to reduce residential natural gas consumption. In collaboration with one of Germany's largest energy providers, we conducted a natural field experiment (N = 2,598) to evaluate the effectiveness of a behaviorally-guided co-design of such a gas-saving initiative by implementing two established behavioral instruments - reminders of gas saving intentions and descriptive norm feedback. Our findings show limited effectiveness of the behavioural instruments during the high-price period. The feedback risks a "boomerang effect" among households with above-average initial savings, who reduce their conservation efforts in response. The reminder does not significantly enhance savings in our main specifications, yet, realizes 1 percentage point savings in alternate models refining for outliers. Potential mechanisms include a significant intention-action gap and misperceived effectiveness of energy-saving actions, which are not alleviated by the reminder.

Suggested Citation

  • Tinnefeld, Vicky & Kesternich, Martin & Werthschulte, Madeline, 2025. "Do energy-saving nudges deliver during high-price periods? Field experimental evidence from the European energy crisis," ZEW Discussion Papers 25-060, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:333899
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    References listed on IDEAS

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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