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Intrinsic motivation to promote the development of renewable energy: a field experiment from household demand

Author

Listed:
  • Adélaïde Fadhuile
  • Daniel Llerena
  • Béatrice Roussillon

Abstract

A demand response program is a promising tool to increase the share of intermittent renewable energy in the electricity production mix. It requires that households adapt their energy consumption to the level of energy production in order to balance the grid, i.e., decrease (increase) their consumption during peak load (peak energy production) event. However, energy conservation efforts suffer from many cognitive biases that impede the optimization of electricity consumption and thus demand flexibility. This article presents a randomized field experiment aimed at introducing demand response with nonmonetary incentives coupled by a set of nudges addressing these cognitive biases. Our results are very encouraging, as demand was successfully decreased by 21% during the peak load event and increased by 17% during the peak energy production event. Our tested nudges are cheap, easy to implement and provide interesting results in demand management programs.

Suggested Citation

  • Adélaïde Fadhuile & Daniel Llerena & Béatrice Roussillon, 2023. "Intrinsic motivation to promote the development of renewable energy: a field experiment from household demand," Working Papers 2023-01, Grenoble Applied Economics Laboratory (GAEL).
    • Handle: RePEc:gbl:wpaper:2023-01
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    References listed on IDEAS

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    More about this item

    Keywords

    Flexibility; Randomized Field Experiment; Energy Conservation; Nudges;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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