Can Self-Set Goals Encourage Resource Conservation? Field Experimental Evidence from a Smartphone App

Abstract

This study leverages a large RCT to examine the potential of goal-setting nudges for resource
conservation at scale. We randomize a feature that allows subjects to set themselves
energy consumption targets in a popular smartphone app. We document negative effects of
the nudge on app utilization and estimate null effects on energy consumption with confidence
intervals that rule out estimates from observational studies. A complementary survey
identifies the mechanisms underlying these behavioral responses. Using a structural model
and random variation of the app’s price, we estimate that the average user is willing to pay
7.41 EUR to avoid the nudge.

Keywords: Nudging, goal setting, scalability, field experiments, energy, behavioral welfare economics, mobile phones

JEL Classification: C93, D91, Q49