Behavioral economics and energy conservation - a systematic review of nonprice interventions and their causal effects

Abstract

Research from economics and psychology suggests that behavioral interventions can be a powerful climate policy instrument. This paper provides a systematic review of the existing empirical evidence on non-price interventions targeting energy conservation behavior of private households. Specifically, we analyze the four nudge-like interventions referred to as social comparison, pre-commitment, goal setting and labeling in 38 international studies comprising 91 treatments. This paper differs from previous systematic reviews by solely focusing on studies that permit the identification of causal effects. We find that all four interventions have the potential to significantly reduce energy consumption of private households, yet effect sizes vary immensely. We conclude by emphasizing the importance of impact evaluations before rolling out behavioral policy interventions at scale.