Reducing domestic heating demand: Managing the impact of behavior-changing feedback devices via marketing

Abstract

Feedback devices can be used to inform households about their energy-consumption behavior. This may persuade them to practice energy conservation. The use of feedback devices can also-via word of mouth-spread among households and thereby support the spread of the incentivized behavior, e.g. energy-efficient heating behavior. This study investigates how to manage the impact of these environmental innovations via marketing. Marketing activities can support the diffusion of devices. This study aims to identify the most effective strategies of marketing feedback devices. We did this by adapting an agent-based model to simulate the roll-out of a novel feedback technology and heating behavior within households in a virtual city. The most promising marketing strategies were simulated and their impacts were analyzed. We found it particularly effective to lend out feedback devices to consumers, followed by leveraging the social influence of well-connected individuals, and giving away the first few feedback devices for free. Making households aware of the possibility of purchasing feedback devices was found to be least effective. However, making households aware proved to be most cost-efficient. This study shows that actively managing the roll-out of feedback devices can increase their impacts on energy-conservation both effectively and cost-efficiently.

A review of agent‐based modeling of climate‐energy policy

“…Somewhat distinct information‐based instruments are social network interventions. For instance, Jensen and Chappin (2017) show that targeting opinion leaders to communicate about smart meters has a considerable effect on the diffusion of this new technology (see also Wang et al, 2018a). Similarly, Nannen and van den Bergh consider a policy that increases the relative welfare of exemplary agents, who invest much in renewable energy, by awarding them a monetary prize.…”

“…Several types of interactions are addressed by the reviewed ABMs. The simplest form is information diffusion: Social connections provide information about the existence of a new good—a necessary condition for its adoption as in Jensen and Chappin (2017). Information can diffuse through a word‐of‐mouth network that helps the agents to revise their expectations about the utility associated with a certain behavior (Azar & Menassa, 2011; Ernst & Briegel, 2017; Kangur et al, 2017; Niamir et al, 2018; Silvia & Krause, 2016; Wang et al, 2018a).…”

Contribution of University to Environmental Energy Sustainability in the City

“…Considering the differences in the results for the buildings, the simulation process of NEST is based on a series of default assumptions to assess the energy consumption and environmental behaviour of the buildings. Considering these assumptions, it is understood that there will be certain variation between the building simulation result and the real performance of the building [50][51][52]. The reasons for the performance gap in a particular building can be several but in general, the performance gap happens due to the accuracy of the default values in the building simulation, variation of the weather data, or the influence of user, understood as user behaviour.…”

Using Agent-Based Models to Generate Transformation Knowledge for the German Energiewende—Potentials and Challenges Derived from Four Case Studies

“…In order to assist the large-scale leveraging of the potential of feedback devices, this case study addressed the question of which method of managing the rollout of feedback technology is most effective at creating additional energy-efficient heating behaviour, using the CO 2 meter as a proxy. The model, building on an earlier version [66], is presented in detail by Jensen and Chappin [67].…”

“…The tested marketing strategies rank differently when compared based on their effectiveness than if compared for cost-efficiency. Regarding effectiveness, Jensen and Chappin [67] found the lending out of devices to be the best performing marketing strategy. The most cost-effective measure is raising awareness among households of higher social status.…”