Incentivized Learning and Attention-driven Treatment Effects: a Field Experiment on Energy Conservation

85 Pages Posted: 9 Nov 2022 Last revised: 26 Dec 2023

See all articles by Marco Castillo

Marco Castillo

Texas A&M University

Ragan Petrie

Texas A&M University - Department of Economics; University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Date Written: December 19, 2023

Abstract

We investigate how incentives affect learning when attention is multidimensional. Households are provided high-frequency information on gas usage and/or monetary incentives to reduce energy consumption. Information coupled with incentives leads to lower consumption, and information without incentives leads to higher consumption. Higher consumption persists a year later for those who did not receive incentives. Both groups accessed the same information technology to learn preferences and costs for warmer/colder indoor temperatures yet have different durable treatment effects. Incentives focused learning on cost, rather than comfort - those offered incentives explored colder house temperatures, while those without incentives tried a warmer house. Objective, real-time information can produce opposite behavior, as incentives affect learning.

Keywords: Learning, selective attention, incentives, field experiment, energy usage

JEL Classification: D91, D12, C93

Suggested Citation

Castillo, Marco and Petrie, Ragan, Incentivized Learning and Attention-driven Treatment Effects: a Field Experiment on Energy Conservation (December 19, 2023). Available at SSRN: https://ssrn.com/abstract=4261298 or http://dx.doi.org/10.2139/ssrn.4261298

Marco Castillo

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

HOME PAGE: http://www.marcocastillo.org

Ragan Petrie (Contact Author)

Texas A&M University - Department of Economics ( email )

4228 TAMU
College Station, TX 77843-4228
United States

HOME PAGE: http://www.raganpetrie.org/

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
37
Abstract Views
627
PlumX Metrics