Electricity Consumption and Social Norms Initial results from an ongoing Social Experiment in Cape Town Grant Smith (EPRU) Where did we get the idea? We got the idea for this study from a smaller research project run in San Marcos, California by: •P. Wesley Schultz, J. M. Nolan, R. Cialdini, N. J. Goldstein and V. Griskevicius With electricity consumption. •Sample size: 287 •Year: 2007 •Paper: The constructive, destructive and reconstructive power of social norms. •Journal: Psychological Science. Vol. 18(5). We first heard about the above research in chapter 3 of “Nudge”, by Richard Thaler and Cass Sunstein. Grant Smith (EPRU) Where did we get the idea? We got the idea for this study from a smaller research project run in San Marcos, California by: •P. W. Schultz, J. M. Nolan, R. Cialdini, N. J. Goldstein and V. Griskevicius With electricity consumption. •Sample size: 287 •Year: 2007 •Paper: The constructive, destructive and reconstructive power of social norms. •Journal: Psychological Science. Vol. 18(5). Since rolled out by OPower in the USA, who provide a utility’s consumers with tailored energy feedback reports that incorporate much of Schultz et al. Grant Smith (EPRU) What are we doing? Extending the USA strategies to •Lower Incomes • Non smart metered contexts We want to see if, in Cape Town, we can get households to use less electricity of their own Free Will by referencing their consumption to Social Norms for Electricity Consumption. What are we doing? We want to see if, in Cape Town, we can get households to use less electricity of their own Free Will by referencing their consumption to Social Norms for Electricity Consumption. Two sorts of norms are investigated... Descriptive Norms: City level. Eg. The average household in the City consumed 100kwh last month Your household consumed 200 kwh in the past month. Your household consumed more/less than the average. Previous research has shown that people will tend to alter their consumption towards a reported norm. We report norms at two levels of aggregation. Neighbourhood level. Eg. The average household in your neighbourhood consumed 425 kwh last month Grant Smith (EPRU) What are we doing? We want to see if, in Cape Town, we can get households to use less electricity of their own Free Will by referencing their consumption to Social Norms for Electricity Consumption. Two sorts of norms are investigated... Descriptive Norms: Eg. The average household in the City consumed 100kwh last month City level. Your household consumed 200 kwh in the past month. Your household consumed more/less than the average. Previous research has shown that people will tend to alter their consumption towards a reported norm. We report norms at two levels of aggregation. Neighbourhood level. and... Injunctive norms A smaller body of research has shown that the use of an injunctive norm will encourage those consuming less than average to continue consuming less than average, while still encouraging over consumers to reduce their consumption. Eg. The average household in your neighbourhood consumed 425 kwh last month If under consuming If over consuming Grant Smith (EPRU) What are we doing? (continued...) • We report these norms via inserts placed in the electricity accounts of households in our sample. • In order to analyse the effect of the different sorts of norms we have 5 main treatment groups of in our sample. •The control group is made up of households from the same neighbourhoods* as those in our sample Cell CD CDI Level of reporting City City Descriptive Descriptive and Injunctive Norms reported ND NDI Control Neighbourhood Neighbourhood Descriptive * MRUs (meter reading units) are used as Neighbourhoods in our sample. Descriptive and Injunctive N/A No Insert with bill. Grant Smith (EPRU) What is our sample? • 13 319 Households • 7532 in Treatment Sample • 5787 in Control Sample (untreated households from the same neighbourhoods as the treated sample) • 12 Suburbs • From everywhere except Western and Eastern areas • 3 Major Socio‐economic levels • Each area’s 3 Major bands of domestic electricity consumption Grant Smith (EPRU) What is our sample? Cell A B C D Control Level of reporting City City Neighbourhood Neighbourhood N/A Norms reported Descriptive Descriptive and Injunctive Descriptive Descriptive and Injunctive No Insert with bill. Constantia 60 67 54 63 60 Durbanville 108 95 85 96 1547 Pinelands 77 67 67 74 114 Tamboerskloof 79 85 90 95 416 Athlone 81 97 92 82 319 Bonthewul 55 40 50 61 68 Grassy Park 70 64 61 61 79 Heideveld 26 25 30 26 0 Salt River 38 39 42 46 273 Gugulethu 112 106 114 108 191 Langa 43 37 49 45 86 Mannenberg 45 48 47 55 Upper Middle Lower 0 Grant Smith (EPRU) What were the initial results? 1. Receiving any sort of norms feedback lowers consumption. 2. Middle Income and Lower income households respond strongest Jan‐April Grant Smith (EPRU) What were the initial results? (continued...) 3. Mostly no significant difference between treatment types 4. Injunctive and city norm not playing well in low income Jan‐April Grant Smith (EPRU)