Application of the economic theory of self-control to model energy conservation behavioral change in households

Abstract

Smart meters and in-house displays hold a promise of energy conservation for those who invest in such technology. Research has shown that households only have a limited interest in such technology and information is thus often neglected, with rather limited energy savings. Surprisingly few empirical investigations have a theoretical foundation that may explain what is going on from a behavioral perspective. In this study the economic theory of self-control is used to model energy-efficient behavior in middle-income households in Sweden. Our results show that different levels of energy-efficient behavior do not really have any impact on the actual consumption levels of electricity. Instead, different beliefs exist of being energy-efficient, but the households do not act accordingly. We recommend to policy makers that the payment time period should be changed to pre-paid electricity to stimulate the monitoring of bills and to introduce a gaming strategy to change incentives for energy conservation.