Effects of monetary rebates, feedback, and information on residential electricity conservation.

Abstract

In this study, conducted during the summer months in Texas, 129 volunteer participant households were assigned to one of five experimental conditions: a high monetary rebate condition in which participants received conservation information, weekly written feedback on their electricity use, and monetary rebates amounting to a 240% price change in electricity; a low monetary rebate condition with the same structure as the high rebates except payments amounted to a 50% price change; a weekly feedback condition in which participants also received information but no rebates; an information condition; and a control condition. The dependent measure was percentage reduction in electricity use based on actual weekly meter readings by the research staff. Only the high rebate condition significantly curtailed electricity use by about 12% over the course of the study. Elasticity estimates suggested limited responsiveness in electricity consumption to price changes. Questionnaire data showed a pattern in which actual reduction in electricity was associated with planning a conservation program, attending to feedback, and modifying air conditioning use.Psychologists have recently become involved methods (Winett, Note 1). In experimental in conservation and other environmental pro-studies that have been conducted, usually tection concerns, primarily by developing in-with volunteer community residents, potential terventions and evaluating proposed or re-conservation procedures were introduced and cently enacted programs (Tuso & Geller, their effect on actual energy consumption 1976). Our experimental technologies, used evaluated by daily or weekly reading of enat a microeconomic level of investigation, pro-ergy meters. Interventions already studied vide an important alternative to the frequent have included information packages, feedback, reliance of government and power company and reinforcement procedures implemented by officials on nonexperimental macroeconomic using monetary rebate systems.Rebates are a method for studying consumer responsiveness to price changes. Re-Richard A. Winett is Senior Research Associate at ceiving a rebate for reduced energy use means the Institute for Behavioral Research, Silver Spring, that the price of energy has been changed Maryland.

Why does real-time information reduce energy consumption?

“…An obvious method to achieve energy conservation is to provide economic incentives to reduce energy consumption (Winett et al, 1978;Midden et al, 1983;Petersen et al, 2007;Mizobuchi and Takeuchi, 2012). A number of empirical studies have estimated how detailed information on power use can contribute to energy conservation (Sexton et al, 1989;Wood and Newborough, 2003;Delmas et al, 2013).…”

A Group Contingency for Electricity Conservation in Master‐metered Apartments

“…Several studies have demonstrated that regular feedback on energy use can reduce consumption (Becker, 1978;Hayes & Cone, 1977;Kohlenberg, Phillips, & Proctor, 1976;Palmer, Lloyd, & Lloyd, 1978;Seligman & Darley, 1977;Winett, Kaiser, & Haberkorn, 1977;Winett, Neale, & Grier, 1979). Monetary rebates based on decreases in energy consumption have also been shown to be effective means of reducing residential energy use (Winett, Kagel, Battalio, & Winkler, 1978;Winett & Nietzel, 1975 There is a category of residential units in which there is someone with a strong interest in getting residents to conserve energy. These are master-metered apartments, in which residents do not pay for their own energy use directly.…”

Drivers of Residential Energy Saving

“…These results are in line with some previous studies. That is to say, some field studies have indicated that economic rewards (e.g., money or prizes) have been successful in reducing household energy consumption (Winett et al, 1978;Midden et al, 1983;McClelland & Cook, 1980;Petersen et al, 2007). Moreover, social comparisons can be an effective strategy in motivating people to save energy because it facilitates social learning about the individuals' optimal level of energy use (Cai et al, 2009;Munshi & Myaux, 2006).…”