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Under Pressure! Nudging Electricity Consumption within Firms. Feedback from a Field Experiment

Christophe Charlier, Gilles Guerassimoff, Ankinée Kirakozian, and Sandrine Selosse

Year: 2021
Volume: Volume 42
Number: Number 1
DOI: 10.5547/01956574.42.1.ccha
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Abstract:
Many economists and psychologists have studied the impact of nudges on households' pro-environmental behaviors. Interestingly, "private nudges" can be imagined for companies. Yet, studies focusing on nudging employees' energy use are rare. The objective of our paper is to explore this issue with the help of a field experiment conducted at 47 French companies' sites. Using a difference-in-difference methodology, the effects of three nudges on employees' energy conservation are tested. The first nudge, "moral appeal", stresses the responsible use of energy. The second one, "social comparison", informs employees on the energy consumption of other firms participating in the experiment. Finally, the third nudge, "stickers", alerts employees about good energy conservation practices. Our results stress the complementarity of these nudges. When implemented alone, the three nudges have no significant effects on energy consumption. However, when the moral appeal and social comparison nudges are combined with the stickers nudge, they become effective.



Green is Good—The Impact of Information Nudges on the Selection of Voluntary Green-Power Plans

Eric Cardella, Bradley T. Ewing, and Ryan B. Williams

Year: 2022
Volume: Volume 43
Number: Number 1
DOI: 10.5547/01956574.43.1.ecar
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Abstract:
A recent trend has been a move toward greater reliance on renewable or “green” energy sources, especially in the residential sector. Using a choice experiment, this paper examines how providing information regarding the efficiency, cost, and environmental impacts of different power-generating sources impact consumers’ stated preferences for selecting voluntary green-power plans. Based on 21,000 plan choices from two different samples totaling over 1,800 respondents, our results indicate that information nudges significantly impact respondents’ choice of plan. Promoting the advantages of the green plan or the disadvantages of the “gray” plan increase green plan selection. The magnitudes of these estimated effects are economically significant being roughly equivalent to a change in the monthly green price premium of $4/month. We also find that promoting the advantages of the green plan is more effective when the green plan premium is relatively small, while highlighting the drawbacks of the gray plan is more effective when the green plan premium is relatively large. Our results suggest that information nudges have the potential to be a plausible, economical, and effective mechanism to increase adoption of voluntary green-power plans.





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