Information Provision, Market Incentives, and Household Electricity Consumption: Evidence from a Large-Scale Field Trial

Abstract

Time-of-use (TOU) pricing for electricity is an effective means to allocate electricity, though regulators are increasingly employing non-market strategies to provide information and induce conservation. We evaluate a large-scale field trial in which households facing TOU pricing were given an in-home display, providing real-time feedback on electricity consumption. Receipt of the device results in a 3% reduction in average electricity consumption. The reduction in demand is roughly constant throughout the day, concentrated in the Fall and Winter, and sustained for at least five months following receipt of the device, with households becoming more (less) price sensitive in warmer (colder) months.

Keywords: Energy demand, information provision, time-of-use pricing

JEL Classification: D12, L94, Q41, Q48