EconPapers    
Economics at your fingertips  
 

Using loss aversion to incentivize energy efficiency in a principal–agent context — Evidence from a field experiment

Christin Hoffmann and Kirsten Thommes

Economics Letters, 2020, vol. 189, issue C

Abstract: Promoting energy-efficient behavior of agents in a principal–agent context simultaneously decreases costs for firms and mitigates CO2 emissions. Along this line, we analyze the effect of incentive framing on energy-efficient driving behavior. Our results contribute to the understanding of the drawbacks of loss framing. In a situation with persistent labor market relations, an extremely low bonus, and heterogeneous prior performance, the introduction of a bonus framed as a gain outperforms that of a bonus framed as a loss.

Keywords: Energy-efficient behavior; Loss aversion; Field experiment (search for similar items in EconPapers)
JEL-codes: C93 Q49 M52 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520300264
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:189:y:2020:i:c:s0165176520300264

DOI: 10.1016/j.econlet.2020.108984

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2021-01-21
Handle: RePEc:eee:ecolet:v:189:y:2020:i:c:s0165176520300264