Intrinsic Motivation to Promote the Development of Renewable Energy: A Field Experiment from Household Demand

Adélaïde Fadhuile, Daniel Llerena () and Béatrice Roussillon ()
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Daniel Llerena: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes
Béatrice Roussillon: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: A demand response program is a promising tool to increase the share of intermittent renewable energy in the electricity production mix. It requires that households adapt their energy consumption to the level of energy production in order to balance the grid, i.e., decrease (increase) their consumption during peak load (peak energy production) event. However, energy conservation efforts suffer from many cognitive biases that impede the optimization of electricity consumption and thus demand flexibility. This article presents a randomized field experiment aimed at introducing demand response with nonmonetary incentives coupled by a set of nudges addressing these cognitive biases. Our results are very encouraging, as demand was successfully decreased by 21% during the peak load event and increased by 17% during the peak energy production event. Our tested nudges are cheap, easy to implement and provide interesting results in demand management programs.

Keywords: Randomized field experiment; Energy conservation; Nudges; Flexibility (search for similar items in EconPapers)
Date: 2023-02-07
New Economics Papers: this item is included in nep-ene, nep-env and nep-exp
Note: View the original document on HAL open archive server: https://cnrs.hal.science/hal-03977597v1
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Working Paper: Intrinsic motivation to promote the development of renewable energy: a field experiment from household demand (2023)
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