Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand
Koichiro Ito (),
Takanori Ida and
Makoto Tanaka ()
American Economic Journal: Economic Policy, 2018, vol. 10, issue 1, 240-67
Firms and governments often use moral suasion and economic incentives to influence intrinsic and extrinsic motivations for economic activities. To investigate persistence of such interventions, we randomly assign households to moral suasion and dynamic pricing that stimulate energy conservation during peak-demand hours. We find significant habituation and dishabituation for moral suasion—the treatment effect diminishes after repeated interventions but can be restored to the original level by a sufficient time interval between interventions. Economic incentives induce larger treatment effects, little habituation, and significant habit formation. Our results suggest moral suasion and economic incentives produce substantially different short-run and long-run policy impacts.
JEL-codes: C93 D83 L94 L98 Q41 Q48 (search for similar items in EconPapers)
Note: DOI: 10.1257/pol.20160093
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... wZZTk8mPpRViOORG03dy (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... OalillrMdZrU5TDRkT9C (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... ckLT2KaBVN7-gthRrBpH (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejpol:v:10:y:2018:i:1:p:240-67
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Economic Policy is currently edited by Matthew Shapiro
More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().