Limited attention in residential energy markets: a regression discontinuity approach

Keefer, Quinn A. W.; Rustamov, Galib

doi:10.1007/s00181-017-1314-6

Cited by 7 publications

(7 citation statements)

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“…This research builds on previous work that has explored the implications of e‐billing participation (Sexton, 2015) and the growing discussion regarding the prevalence of inattention in the energy market (Keefer & Rustamov, 2018). We contribute to discussions surrounding consumption behaviors in the residential energy market by investigating how inattention tied to e‐billing participation alters the consumption behavior of residential energy users.…”

Section: Resultsmentioning

confidence: 99%

“…Research on e-billing by utilities has focused on understanding how tailored messaging impacts energy conservation (Darby, 2006); it has found that the risks of inattention in e-billing include decreased price salience (Finkelstein, 2012;Sexton, 2015), which can lead to unintended increases in consumption. Energy consumption behavior is particularly susceptible to inattention (Keefer & Rustamov, 2018) due to veiled prices, increased search costs, and limits to information access (Hansen & Haas, 2001), suggesting that individuals have overtaxed time and attention limits when making energy-related decisions (Falkinger, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…In situations where bill shock occurs, customers become more attentive of their consumption and energy costs, reacting rationally by decreasing their future energy usage (Filippini, Hirl, & Masiero, 2016). Left digit‐bias, a possible antecedent to inattention, occurs when the cognitive processing of numbers is dependent upon their digit‐placement and unit distance (Keefer & Rustamov, 2018). The ability to process costs is relatively simple for the left‐most digit, followed by a sharp and continual decrease in salience as the digit‐placement extends right (Lacetera et al, 2011).…”

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confidence: 99%

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Susceptibility to Inattention: Unpacking Who is Susceptible to Inattention in Energy‐Based Electronic Billing

Curley

Rustamov

Harrison

et al. 2020

Review of Policy Research

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In this paper, we examine characteristics that may change the susceptibility to inattention in electronic billing (e-billing). Digitization of energy bills can increase the delivery of energy feedback and increase knowledge around conservation efforts, only when attention remains at similar levels to that of paper bills. We hypothesize that only subsets of the population are susceptible to inattention in e-billing. We do this by estimating energy consumption for e-bill and paper billers controlling for several characteristics of participants, homes, and weather in the City of Tallahassee, Florida. We use a difference-indifferences (DD) approach to estimate the effects of the e-bill participation, which is a common approach for observational and quasiexperimental settings. We find that budget constraints limit an individual's susceptibility to inattention in e-billing, with lower income groups decreasing energy consumption on average by 4.4% but has no effect on higher income groups. This suggests that inattention may not occur at the same levels or for the same reasons for all members of the public. This has implications regarding the practice of policy design and communication strategies for the public at large.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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confidence: 99%

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Susceptibility to Inattention: Unpacking Who is Susceptible to Inattention in Energy‐Based Electronic Billing

Curley

Rustamov

Harrison

et al. 2020

Review of Policy Research

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“…We show that understanding of distributional effects can be crucial during the decision of implementing energy efficiency programs and extracting savings cost effectively. Furthermore, better-targeted information can elicit biased beliefs, present bias, inattention, and other decision biases (Allcott, 2016;Keefer & Rustamov, 2017). also suggest that if restricting eligibility is not institutionally feasible, targeted marketing at highresponse groups would also generate savings and can enhance policy costeffectiveness.…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 99%

“…We show that understanding of distributional effects can be crucial during the decision of implementing energy efficiency programs and extracting savings cost effectively. Furthermore, better-targeted information can elicit biased beliefs, present bias, inattention, and other decision biases (Allcott, 2016; Allcott & Taubinsky, 2015; Keefer & Rustamov, 2017). Allcott et al.…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 99%

Differential and Distributional Effects of Energy Efficiency Surveys: Evidence from Electricity Consumption

Kniesner

Rustamov

2018

J. Benefit Cost Anal.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Differential and Distributional Effects of ABSTRACT Differential and Distributional Effects of Energy Efficiency Surveys: Evidence from Electricity Consumption *Our research investigates the magnitude of the effect of residential energy efficiency audit programs on later household electricity consumption. These programs are designed to increase awareness of household energy consumption with personalized feedback that will eventually lead to behavioral changes. In this type of survey, there is only a one-time interaction between households, which participate voluntarily, and the surveyors. The objective of this study is to determine whether and to what extent such surveys lead to behavioral changes. We argue that the perceived complexity of the survey feedback will determine whether the subsequent behavior is sustainable. Then we analyze how persistent the intervention is over time and whether the effects decay or intensify. However, the main evaluation problem involving these surveys is self-selection bias. To correct for this bias, we propose two non-parametric estimators by using a kernel-based propensity score matching approach. In the first method, we use "difference-indifferences" (DID) estimations. The second estimator is quantile DID, which produces estimates on distributions. The comparison group consists of households who were not yet participating in the survey but participated later. The evidence suggest that the customers who participated in the survey reduced their electricity consumption by 6.7%, compared with customers who had not yet participated in the survey. In addition, as the quantiles of the distribution increase, the effect of the program decreases.JEL Classification: C31, D03, D12, L94, Q41

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Effects of unemployment news on economic perceptions – Evidence from German Federal States

Garz

2018

Regional Science and Urban Economics

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Limited attention in residential energy markets: a regression discontinuity approach

Cited by 7 publications

References 53 publications

Susceptibility to Inattention: Unpacking Who is Susceptible to Inattention in Energy‐Based Electronic Billing

Susceptibility to Inattention: Unpacking Who is Susceptible to Inattention in Energy‐Based Electronic Billing

Differential and Distributional Effects of Energy Efficiency Surveys: Evidence from Electricity Consumption

Effects of unemployment news on economic perceptions – Evidence from German Federal States

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