Behavioral Anomalies and Energy-related Individual Choices: The Role of Status-quo Bias

Julia Blasch and Claudio Daminato

The Energy Journal, 2020, vol. 41, issue 6, 181-214

Abstract: The literature on the energy-efficiency gap discusses the status-quo bias as a behavioral anomaly that potentially increases a household’s energy consumption. We empirically investigate the extent to which the status-quo bias is linked to residential electricity consumption through two channels: non-replacement of old appliances and overuse of appliances. Using data from a large household survey conducted in three European countries, we find that our measure of status-quo bias is a significant predictor of both the age of home appliances and the level of a household’s consumption of energy services. This is also reflected in the total electricity consumption, which is found to be around 6% higher when the household head is status-quo biased. We thus provide empirical evidence that the status-quo bias may represent a substantial barrier to increasing residential energy efficiency. Our findings prompt policy makers to design instruments that take this barrier into account.

Keywords: Behavioral anomalies; Status-quo bias; Appliances replacement; Energy efficiency; Residential energy consumption (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:41:y:2020:i:6:p:181-214

DOI: 10.5547/01956574.41.6.jbla

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