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Article
Spillovers from Behavioral Interventions: Experimental Evidence from Water and Energy Use
Economics Working Papers
  • Katrina Jessoe, University of California, Davis
  • Gabriel E. Lade, Iowa State University
  • Frank Loge, University of California, Davis
  • Edward Spang, University of California, Davis
Publication Date
12-6-2017
Number
E2e 033
Abstract

This paper provides experimental evidence that behavioral interventions spill over to untreated sectors by altering consumer choice. We use a randomized controlled trial and high-frequency data to test the effect of social norms messaging about residential water use on electricity consumption. Messaging induces a 1.3 to 2.2% reduction in summertime electricity use. Empirical tests and household survey data support the hypothesis that this nudge alters electricity choices. An engineering simulation suggests that complementarities between appliances that use water and electricity can explain only 26% of the electricity reduction. Incorporating the cross-sectoral spillover increases the cost-effectiveness of the intervention by 62%.

Version History

Original Release Date: December 6, 2017

Departments
Department of Economics, Iowa State University
File Format
application/pdf
Length
50 pages
Citation Information
Katrina Jessoe, Gabriel E. Lade, Frank Loge and Edward Spang. "Spillovers from Behavioral Interventions: Experimental Evidence from Water and Energy Use" (2017)
Available at: http://works.bepress.com/gabriel-lade/13/