Using Field Experiments to Address Environmental Externalities and Resource Scarcity: Major Lessons Learned and New Directions for Future Research

Abstract

This article provides an overview of the use of field experiments in energy and resource economics. I concentrate on two areas of study; field experiments that (i) speak to the use of dynamic pricing plans to manage the use of electricity and water and (ii) explore the adoption of energy saving technologies. Viewed in its totality, this work suggests that both neo-classical factors such as prices or search costs and behavioral constructs such as salience or social norms influence the use of energy and water. For academics, the studies reviewed provide a deeper understanding of individual behavior and the factors that drive the private provision of public goods. For policy makers, the studies reviewed provide a blueprint outlining ways to combine insights from neo-classical and behavioral economics to manage energy/water demand and mitigate externalities generated through their use.

Assessing the Energy-Efficiency Gap

“…In contrast to information disclosure, subsidies may be poorly targeted for combating inattention if the consumers who know about them also tend to be attentive to future energy costs 32 Recent field experiments demonstrate the potential for experimental research to advance knowledge of the energy-efficiency gap in additional markets. See Price (2015) for a summary of this literature. (Allcott, Knittel, and Taubinsky 2015).…”

Lab-in-the-Field Experiments: Perspectives from Research on Gender

“…3 There are several excellent review articles that focus on the use of field experiments in specific areas. Examples include Bertrand and Duflo (2016) on discrimination, List and Price (2016), Price (2014) and Brent et al (2017) on environmental economics, and List and Rasul (2011) on labour economics.…”

Lab-in-the-field experiments: perspectives from research on gender

“…2 There are several excellent review articles that focus on the use of field experiments in specific areas. Examples include Bertrand and Duflo (2016) on discrimination, List and Price (2016), Price (2014) and Brent et al (2017) on environmental economics, and List and Rasul (2011) on labour economics.…”