Energy Demand Management and Social Norms

Abstract

The main objective of our study was investigating the impact of norms and financial motivation on the disutility of energy management for Polish households. We analyzed consumer preferences and willingness to accept demand-side management (DSM) programs. Choice experiment was applied for electricity contracts including external control of electricity consumption. Ajzen’s theory of planned behavior provided the theoretical framework of the study, which tested hypotheses about the impact of social norms on consumer choices of electricity contracts. We show that people with higher descriptive social norms about electricity consumption are less sensitive to the level of compensation and more responsive to the number of blackouts. People willing to sign a contract for financial reasons were less sensitive to the external control of electricity consumption and less inclined toward the status quo option. Injunctive social norms and personal norms had a non-significant impact on consumer decisions. We conclude that financial incentives can reduce the effect of the norms. Social and personal norms seem to be more important when we analyze the revealed preferences. European countries face significant challenges related to changes in energy policy. This study contributes to understanding the decisions of households and provides insights into the implementation of DSM.

Influence of Attitudes on Willingness to Choose Time-of-Use Electricity Tariffs in Germany. Evidence from Factor Analysis

“…In the broader literature on energy issues, i.e., electricity prices tied to electricity consumption (e.g., [18]), load-restrictions (e.g., [19,20]), green electricity (e.g., [21][22][23][24]) or energy technologies (e.g., [25,26]), attitudes were found to explain heterogeneity in preferences. Wang et al [18], for example, hypothesized that consumers' willingness to choose an electricity tariff with prices tied to electricity consumption is driven by elements of TPB, verified it by factor analysis, and estimated willingness to choose this tariff using an ordered logit.…”

“…In their choice experiment, Gołębiowska et al [19] analyzed the impact of norms on preferences for external control of electricity consumption. They measured personal, social, and descriptive social norms using four items, and found that descriptive norms had the largest impact on preferences while personal and social had only a weak effect.…”

“…At first, respondents provided information on their current electricity tariffs and drivers for their decision-making. Subsequently, respondents revealed their values, attitudes, and subjective norms based on the TPB and the VBN with regard to TOU tariffs (i.e., their climate change awareness; their evaluation of electricity saving measures; their perception of TOU tariff's impacts; and their motivation to choose a TOU tariff; see Appendix B, questions [16][17][18][19]. Each statement was measured using a four-item response scale.…”

Electricity Prices and Consumer Behavior, Case Study Serbia—Randomized Control Trials Method

“…Despite the fact that is "problematic to observe how householders actually perform electricity-using practices in their everyday lives" [6], this study gives contribution to "a growing interest in how norms, routine habits and social networks influence energy-consumption behavior" [7]. In general, "household energy conservation is both a challenge and an opportunity" for the future energy polices and decisions [8,9]; therefore, decision makers and researchers alike should pay more attention to the consumer behavior [10].…”

Households’ Electrical Energy Conservation and Management: An Ecological Break-Through, or the Same Old Consumption-Growth Path?

“…An interest in technology and the desire to own the latest products also play a role. The influence of the social environment is relevant to the discussion, including existing norms of behavior, as well as the values of and actions taken by family and friends [6,15]. Some studies reported the high awareness of individual energy consumers about the seriousness of the challenges of the climate crisis, and showed that at least part of the society may be ready to contribute part of their income to climate change mitigation policies [16,17].…”