Promoting Energy Efficiency in Emerging Economies Through Consumer Education: Results From a Field Experiment in Mexico

Stojanovski, Ognen; Leslie, Gordon; Wolak, Frank A.; Wong, Juan Enrique Huerta; Thurber, Mark C.

doi:10.2139/ssrn.3220111

“…As an example, consider two treatment cycles around August 21, which we used as an example of treatment days in the beginning of this subsection. The day-ahead forecasts for the maximum temperatures exceeded the threshold (31°C or equivalently 88°F) for August 17,21,22,28,29,and 31. Note that the treatment days were not necessarily consecutive because a treatment day had to be a weekday and its forecast maximum temperature had to be above the threshold.…”

Section: B Treatmentsmentioning

confidence: 99%

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Ito

¹

,

Ida

²

,

Tanaka

³

2018

American Economic Journal: Economic Policy

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Firms and governments often use moral suasion and economic incentives to influence intrinsic and extrinsic motivations for economic activities. To investigate persistence of such interventions, we randomly assign households to moral suasion and dynamic pricing that stimulate energy conservation during peak-demand hours. We find significant habituation and dishabituation for moral suasion—the treatment effect diminishes after repeated interventions but can be restored to the original level by a sufficient time interval between interventions. Economic incentives induce larger treatment effects, little habituation, and significant habit formation. Our results suggest moral suasion and economic incentives produce substantially different short-run and long-run policy impacts. (JEL C93, D83, L94, L98, Q41, Q48)

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“…As an example, consider two treatment cycles around August 21, which we used as an example of treatment days in the beginning of this subsection. The day-ahead forecasts for the maximum temperatures exceeded the threshold (31°C or equivalently 88°F) for August 17,21,22,28,29,and 31. Note that the treatment days were not necessarily consecutive because a treatment day had to be a weekday and its forecast maximum temperature had to be above the threshold.…”

Section: B Treatmentsmentioning

confidence: 99%

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Ito

¹

,

Ida

²

,

Tanaka

³

2018

View full text Add to dashboard Cite

Firms and governments often use moral suasion and economic incentives to influence intrinsic and extrinsic motivations for economic activities. To investigate persistence of such interventions, we randomly assign households to moral suasion and dynamic pricing that stimulate energy conservation during peak-demand hours. We find significant habituation and dishabituation for moral suasion-the treatment effect diminishes after repeated interventions but can be restored to the original level by a sufficient time interval between interventions. Economic incentives induce larger treatment effects, little habituation, and significant habit formation. Our results suggest moral suasion and economic incentives produce substantially different short-run and long-run policy impacts.

show abstract

“…Inattention to energy subsidies and pricing structure may further complicate this relationship. Behavior consistent with such inattention has been documented in LMICs that have increasing block price structures, through which a lower marginal price is charged for some basic level of consumption and a higher marginal price is set for consumption that exceeds that amount(McRae and Meeks 2016;Stojanovski et al 2018).15 Calculations are based on IEA and OECD (2018) data.…”

mentioning

confidence: 87%

The Economics of Energy Efficiency in Developing Countries

Fowlie¹,

Meeks

²

2021

Review of Environmental Economics and Policy

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Promoting Energy Efficiency in Emerging Economies Through Consumer Education: Results From a Field Experiment in Mexico

Cited by 3 publications

References 32 publications

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

The Economics of Energy Efficiency in Developing Countries

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