Evidence from a randomized residential electricity field experiment
How should households be encouraged to reduce electricity consumption? This column presents evidence from the US of a randomised “nudging” strategy – providing energy saving tips as well as information on electricity usage relative to neighbours. It finds that while energy conservation nudges work with liberals, they backfire with conservatives. Certain pockets of Republican registered voters actually increased their electricity consumption in reaction to the nudge.
Residential electricity consumption represents roughly 35% of California's total electricity demand. Conservation by consumers would both reduce greenhouse gas emissions and economise on the construction of costly new power plants. But how can we encourage conservation?
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