Incentive-Based Pay and Building Decarbonization: Experimental Evidence from the Weatherization Assistance Program

Peter Christensen, Paul Francisco and Erica Myers

No 31322, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Building energy efficiency is a cornerstone of greenhouse gas mitigation strategies with billions of dollars set aside for extensive upgrades in the coming years. However, impact evaluations have revealed actual energy savings from home upgrade programs often fall short of projections, in part due to contractor underperformance. Using field experiment results, we show refining one program design element—offering performance bonuses to contractors— increased natural gas savings by 24% and generated $5.39-$14.53 in social benefits per dollar invested. Hence, changes to worker incentives can have sizable impacts on the cost effectiveness of GhG abatement in energy efficiency programs.

JEL-codes: H41 J0 Q4 Q50 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-exp, nep-hrm and nep-lab
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