Combining “carrot and stick” to incentivize sustainability in households

Mahmoodi, Jasmin; Prasanna, Ashreeta; Hille, Stefanie Lena; Patel, Martin Kumar; Brosch, Tobias

doi:10.1016/j.enpol.2018.08.037

Cited by 25 publications

(18 citation statements)

References 63 publications

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“…In line with these findings, Mahmoodi, Prasanna, Hille, Patel, and Brosch (2018) found that consumers' tariff choices were largely influenced by the incentive components embedded in the tariff design. Overall, consumers preferred electricity tariffs that applied rewards for consumption decreases, rather than penalties for consumption increases.…”

Section: Introductionmentioning

confidence: 69%

Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

Mahmoodi

Hille

Patel

et al. 2020

J of Consumer Behaviour

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Incentives, both rewards and punishments, are effective instruments that have been embedded in electricity product designs to reduce electricity consumption. Reducing electricity consumption can considerably contribute to climate change mitigation. To better understand consumer preferences for incentive‐based electricity products, a choice experiment using choice‐based conjoint analysis was conducted among a representative sample of Swiss electricity consumers. Based on stated preferences for different product attributes, four consumer segments were identified. While two segments (49.6%) stated preference for incentive‐based products, two other segments were less accepting of incentive components (particularly of penalties). We further explain the segments' preferences using psychographic characteristics, combining measures from psychology and behavioral economics. Precisely, environmental values and emotions, energy saving intentions and motives, perceived product attractiveness, as well as loss and risk aversion, and comparative optimism bias best described the segments. We align our findings with previous segmentation studies and argue for a stronger integration of behavioral economics in the environmental discourse. We further discuss the usefulness of consumer segmentation to develop tailored strategies that effectively target consumers' preferences and needs.

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Section: Introductionmentioning

confidence: 69%

Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

Mahmoodi

Hille

Patel

et al. 2020

J of Consumer Behaviour

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“…Again emphasizing the importance of loss aversion, loss averse people who opt for an electricity-saving tariff have a preference for tariffs without potential financial penalties. Therefore, while adding a financial penalty may be an effective way to promote energy saving (Prasanna et al, 2018;Mahmoodi et al, 2018) and is indeed considered an attractive tariff element by some consumers (such as Segment 5 in the current study), a financial penalty is perceived as repelling by most potential subscribers.…”

Section: Adapted From Thøgersen (2006) Personal Norms Zmentioning

confidence: 85%

“…As losses loom larger than gains (Kahneman and Tversky, 1979), imposing a fine in case a target is missed may be a stronger incentive than a potential reward for reaching a similar target. Based on a stated-choice experiment, Mahmoodi et al (2018) indeed find that penalties have a stronger influence than rewards in the choice of an electricity tariff.…”

Section: Combining Goal Setting With Penaltiesmentioning

confidence: 97%

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Hille

Weber

Brosch

2019

Journal of Cleaner Production

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Electric utilities play a crucial role in designing and deploying electricity conservation programs. However, because people can freely decide to participate in such programs or not, better understanding what types of programs appeal to specific groups of customers is fundamental. The authors therefore explore preferences of likely subscribers for electricity-saving programs defined by various features (such as goal setting, tailored feedback provision, or reward and penalty schemes), and use a latent class approach to capture heterogeneity and detect segments of people that share similar preferences. The segments are subsequently profiled in terms of socio-demographic and psychographic characteristics. Overall, results show that there is considerable heterogeneity in tastes for different features of electricity-saving programs. The findings allow identifying individual characteristics that influence the likelihood to adopt different forms of programs. On this basis, electric utilities may design electricity-saving programs that better satisfy customer needs and effectively tailor marketing and communication programs to the specific target groups.

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“…Foi proposta a arquitetura de um medidor inteligente residencial e uma pesquisa de mercado na região metropolitana de Florianópolis para identificar a configuração adequada do equipamento neste mercado. Pra tanto foi realizada uma pesquisa de mercado utilizando a técnica de Análise Conjunta baseada em Escolhas (ACBE) (MAHMOODI et al, 2018), para estimar a preferência do consumidor sobre os vários atributos do produto (GREEN et al, 2001. Outro atributo é o preço (E), cuja finalidade é entender seu efeito na escolha do cliente (MAHMOODI, et al, 2018).…”

Section: Metodologiaunclassified

“…As pesquisas que utilizam análise conjunta recomendam testar o principal efeito dos atributos e a interação desses atributos com variáveis moderadoras, que descrevem o perfil do cliente (CALEGARI et al, 2018, NAES et al, 2010. Estudos sobre medidores inteligentes residências indicam que várias características dos clientes influenciam na eficiência do uso do medidor, tais como o gênero (ALBANI et al, 2017), despesas com os recursos (GANS et al, 2013) e a renda (MAHMOODI et al, 2018).…”

Section: Arquitetura Do Medidor Inteligenteunclassified

Proposição De Medidor Inteligente Residencial a Proposal of a Residential Smart Meter

Cavalcante¹,

Capella²,

Lacroix³

et al. 2019

Blucher Engineering Proceedings

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As tecnologias IoT possibilitam aos produtos novas funcionalidades transformando-os em "produtos inteligentes". Entre as oportunidades apresentadas pela literatura para aplicação dessas tecnologias está o desenvolvimento de medidores inteligentes residenciais. Este trabalho tem por objetivo o desenvolvimento de uma pesquisa de mercado para um medidor inteligente com arquitetura modular para medir energia, água, gás em residências. Foi realizada uma pesquisa de mercado com a técnica Análise Conjunta Baseada em Escolhas em uma amostra de 202 potenciais clientes da região metropolitana de Florianópolis. Os principais resultados indicam que os potenciais clientes deste dispositivo atribuem maior importância para controle de energia e água, e o acesso às informações de consumo por meio de aplicativo. Também, identificou-se que os potenciais usuários são menos sensíveis ao preço do dispositivo, sendo que as mulheres e os consumidores de imóveis mais econômicos estão dispostos a pagar um preço mais pela implementação do medidor inteligente em suas residências.

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Combining “carrot and stick” to incentivize sustainability in households

Cited by 25 publications

References 63 publications

Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Proposição De Medidor Inteligente Residencial a Proposal of a Residential Smart Meter

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