The effect of descriptive information provision on electricity consumption: Experimental evidence from Lithuania

Abstract

Studies on the effects of information provision on residential energy use conclude that such information can promote households' energy-saving investments and conservation behavior. However, most of these studies are conducted in the U.S. or in other OECD countries, where households, on average, are richer and consume more electricity. This study evaluates the effect of descriptive information provision on residential electricity consumption in a less wealthy OECD country – Lithuania. By using a randomized experiment, we find that the availability of descriptive hourly electricity information provided on web portals reduces electricity consumption by about 8.6%. This effect is equivalent to an annual energy saving of 241 kWh per household. The effect is more pronounced for households with high energy consumption, living in rural areas and detached houses.