The role of energy and investment literacy for residential electricity demand and end-use efficiency
(2017)
Consumers’ limitations in assessing the lifetime cost of household appliances may sustain the much-cited energy efficiency gap. We analyse the impact of an individual’s energy and investment literacy and two different types of decision support on the ability to identify the appliance with the lower lifetime cost in an online randomized controlled trial among two independently chosen samples of the Swiss population. In a decision task, participants choose between appliances with different lifetime cost. One treatment offers a short education programme on how to calculate the lifetime cost of an appliance – via a set of information slides. The second treatment provides access to an online lifetime-cost calculator tool. We find that pre-treatment energy and investment literacy are positively associated with the probability of identifying the appliance with the lowest lifetime cost. Evidence in this paper suggest that both decision aids boost identification of energy-efficient appliances. We discuss strategies to scale up these boosters.
A shift to more sustainable diets is needed to ensure food security and to reduce the pressure on the environment. Yet, many consumers have misconceptions about the environmental impacts of their diets and lack knowledge on how to prepare sustainable meals. This study uses a mixed-methods approach to develop four information nudges and to test their impact on dietary choices among a representative sample of Dutch consumers. A 2 2 between-subjects design crossing type of information (procedural versus declarative) with type of impacts (health versus environmental) is applied. The environmental impact is measured in terms of CO2 emissions, land use and water use. We find that pre-intervention knowledge about sustainable or healthy diets is related to the sustainability of participants’ dietary choices. Procedural knowledge on how to prepare a healthier meal has the greatest potential to influence dietary behavior, in particular for participants without prior self-reported dietary restrictions.
Since the European Energy Efficiency Directive, a lot of attention has been paid to energy saving measures, including how to overcome the barriers for implementation. This paper addresses the dilemmas of the Dutch dairy sector, where farms are getting bigger and mechanization is increasing, while at the same time the sector is aiming for improved energy efficiency and sustainability. With an online tool which systematically recorded the energy performance of dairy farmers, a unique dataset on farm energy use with more than 25,000 observations over the years 2015–2018 was obtained. This allows for a robust analysis of the determinants of energy efficiency in the sector, using panel data analyses. The results of this study reveal three major trends. First, the on-farm use of solar panels proves to be the most significant determinant for reducing non-renewable energy use. Second, gains in energy efficiency triggered by government policies are countervailed by the continuous trend of mechanization, with especially automatic milking systems causing lower energy efficiency. Third, the increasing economies of scale in milk production substantially improve per-unit energy efficiency. However, the increased need for mechanization related to higher on-farm production can cancel out this economies-of-scale effect. These findings add important new insights to the literature on cleaner production in farms and have important policy implications. Strategies for more energy-efficient farming should entail two directions for innovation: first, the stimulation of more energy efficient automatic milking systems, and second, the stimulation of solar energy production on farms including a better on-farm utilization of solar electricity.
Precision farming (PF) technologies can help to mitigate the environmental impact of agriculture by reducing fertiliser use and irrigation while saving cost for the farmer. However, these technologies are not widely adopted in Europe. We study farmers’ willingness to adopt PF technologies based on a choice experiment. Among other determinants, we explore the role of social influence for the valuation of PF technology features. The data are analysed using mixed and latent class logit models. Our results show that knowledge of fellow farmers who adopted the technology positively influences the valuation of PF technology features, stressing the importance of networks.
Given the gaps between EU ambitions regarding energy community development and the current reality of clean energy communities in Europe, we explore a research framework enabling viable multi- and interdisciplinary research into new clean energy communities. We offer a definition of new clean energy communities, discuss their potential for wider dissemination and identify four factors that contribute to the current mismatch between ambitions and reality in energy community development. As a broader framework for interdisciplinary research into the field of new clean energy communities, we propose polycentric governance theory, considering the fact that the area of community energy systems is essentially multi-scalar, and that the rules of engagement in such systems are of great significance. This opens up four avenues for research on energy communities, which we outline in terms of enabling institutional contexts, potential for learning and transferability, business models and value propositions, and evaluation of outcomes and processes.
Even though a broad range of technologies for variable rate application of nitrogen fertiliser is available, there are hardly any documented cases of their use in Austria. In this study, the drivers and barriers of adoption have been investigated. A survey of 242 farmers in Lower Austria was conducted. The survey covered the farmers’ economic situation, concerns, and expectations regarding the future of their farms and their interest in precision farming technologies. A choice experiment was included in the survey to elicit farmers’ preferences for different features of variable rate application technologies. A series of multinomial logit, mixed logit and latent class logit models were run to analyze the choice experiment. Most farmers were interested in variable rate application, whereas technology costs, yield and environmental improvements were found to be important drivers of adoption. Also, farm size, farming system, technological level and network activities seem to play an important role in the uptake of variable rate application technologies.
Im Forschungsprojekt FATIMA (FArming Tools for external nutrient Inputs and water MAnagement) wurde ein integrierter Ansatz für die Optimierung des Stickstoffmanagements in der Landwirtschaft gewählt. Neben der technischen Komponente, die die Verarbeitung von Sentinel-2-Satellitendaten umfasste, wurden auch die sozio-ökonomischen Aspekte eines verbesserten Nährstoffmanagements untersucht. Die Ergebnisse zeigen, dass LandwirtInnen vor allem an zeitnahen Applikationskarten zur teilflächenspezifischen Stickstoffausbringung interessiert sind. Im Zuge des Projekts wurde nicht nur ein Feldversuch für die Validierung der Satellitendaten als Grundlage einer ökonomischen Analyse angelegt, sondern auch eine funktionierende Online-Anwendung für teilflächenspezifische Stickstoffdüngung, basierend auf aktuellen und historischen Satellitenbildern, entwickelt und getestet.
Flooding is one of the most significant natural disasters worldwide. Nevertheless, voluntary take-up of individual damage reduction measures is low. A potential explanation is that flood risk perceptions of individual homeowners are below objective estimates of flood risk, which may imply that they underestimate the flood risk and the damage that can be avoided by damage reduction measures. The aim of this article is to assess possible flood risk misperceptions of floodplain residents in the Netherlands, and to offer insights into factors that are related with under- or overestimation of perceived flood risk. We analyzed survey data of 1,848 homeowners in the Dutch river delta and examine how perceptions of flood probability and damage relate to objective risk assessments, such as safety standards of dikes, as well as heuristics, including the availability heuristic and the affect heuristic. Results show that many Dutch floodplain inhabitants significantly overestimate the probability, but underestimate the maximum expected water level of a flood. We further observe that many respondents apply the availability heuristic.
It is an ongoing debate how to increase the adoption of energy-efficient light bulbs and household appliances in the presence of the so-called ‘energy efficiency gap’. One measure to support consumers’ decision-making towards the purchase of more efficient appliances is the display of energy-related information in the form of energy-efficiency labels on electric consumer products. Another measure is to educate consumers in order to increase their level of energy and investment literacy. Thus, two questions arise when it comes to the display of energy-related information on appliances: (1) What kind of information should be displayed to enable consumers to make rational and efficient choices? (2) What abilities and prior knowledge do consumers need to possess to be able to process this information? In this paper, using a series of (recursive) bivariate probit models and three samples of 583, 877 and 1375 households from three major Swiss urban areas, we show how displaying information on the future energy consumption of electrical appliances in monetary terms (CHF), rather than in physical units (kWh), increases the probability that an individual makes a calculation and identifies the appliance with the lowest lifetime cost. In addition, our econometric results suggest that individuals with a higher level of energy and, in particular, investment literacy are more likely to perform an optimization rather than relying on a decision-making heuristic. These individuals are also more likely to identify the most (cost-)efficient appliance.
We investigate how different types of energy feedback, combined with goal setting, impact on consumers' motivation to conserve electricity. Using an online survey, we test the influence of energy feedback in physical units (kWh), monetary values (EUR) and environmental values (avoided CO2 emissions). We asked participants to set themselves either a high, low or no energy conservation goal. In addition, we assess the respondents’ value types - hedonic, egoistic, altruistic and biospheric – to test predictions derived from goal framing theory. In general, individuals scoring high on biospheric values were more motivated to conserve electricity and their motivation did not increase in response to setting an energy conservation goal. Individuals with egoistic values seem less willing to reduce their electricity consumption, unless in the monetary feedback or high goal conditions. A high conservation goal was only found to be effective in combination with monetary feedback: it increased the motivation to save electricity by 6.7 percentage points in comparison to the low goal condition and 6.6 percentage points in comparison to the control condition.
Nudges based on social norms (norm-nudges) can be compelling behavioral interventions compared with traditional interventions such as taxes and regulations, but they do not work in all circumstances. We tested two empirical norm-nudge frames in an online experiment on taking measures for flood preparedness with large samples of homeowners (N = 1805) in two European countries, to evaluate the possible interactions between norm-nudge effectiveness, individual characteristics, and intercultural differences. We contrasted these norm-nudge treatments with a control and norm-focusing treatment by asking respondents to express their beliefs about what other respondents would do before making a decision relevant to their own payoff. We find no evidence of a treatment effect, suggesting that our social norm-nudges do not affect flood preparedness in the context of a flood risk investment game.
Energy labels with compact information on the energy use of appliances have been adopted worldwide to encourage consumers to make informed investment decisions. This study examines whether communicating environmental emissions (CO2 and air pollutant emissions) on energy labels can increase the preferences for energy-efficient appliances, with a specific focus on the role of individual psychological traits. A survey with decision tasks was conducted among the adult population in the Netherlands. Results show that information on environmental emissions does not increase the intention to invest in energy-efficiency, while energy-saving attitudes and habits do. Nevertheless, presenting information on CO2 emissions as well as combined CO2 and air pollutant emissions on energy labels can increase the preferences for energy-efficient appliances among individuals with relatively strong postmaterialist values. Information on CO2 emissions also increases the preferences of individuals with strong environmental concerns. However, no significant effects are found for information on air pollutant emissions. Also, personal experience of environmental degradation was not found to affect the effectiveness of the tested information interventions. Finally, we discuss the role of attention and type of decision situation for the processing of emissions information on energy labels. Our findings provide insights for improving information display on energy labels and energy education.
Social comparison feedback has been widely applied to encourage energy and water conservation, with the ultimate aim to protect ecosystems and the environment. Yet, the effectiveness of social comparison feedback varies. In this study, with 360 UK participants from Prolific, we conducted an online experiment based on a modified dictator game with multi-round purchasing decisions involving trade-offs between individual monetary payoff and real-world carbon offsets donation. A 2 × 3 between-subjects design was implemented, varying in the externality levels associated with the purchase (high versus low), and the type of feedback (self-feedback, social comparison feedback, and tangible emissions feedback – i.e. social comparison enriched with information relating environmental impacts to daily activity and nature). Furthermore, we measured several psychological traits of participants. Our findings show that social comparison interventions are only effective under certain circumstances. Both interventions with social comparison are more effective in the low-externality context. Furthermore, the effect of tangible emissions feedback is moderated by individuals’ tendency to conform to specific social norms and compete with others. Compared to standard social comparison feedback, social comparison feedback enriched with tangible emissions information is overall more effective. We highlight the importance of tailoring social comparison interventions to local environmental and cultural contexts.
Which farmers adopt solar energy? A regression analysis to explain adoption decisions over time
(2023)
Farmers can play an important role in the critical renewable energy transition by generating solar energy. Farmers' adoption of a solar photovoltaic (PV) system results from a complex and interdependent array of technical, political, social, and economic factors. Under the regime of a covenant on energy and greenhouse gas emissions, the evolution of perceptions and responses to solar PV was monitored for a panel of 279 Dutch farmers in a unique series of surveys in 2015, 2018, and 2020. We observed that the willingness to reduce greenhouse gas emissions steadily increased from 35% of the farmers in 2015 to 82% in 2020, while the perceptions toward solar PV adoption among Dutch farmers fluctuated over this period. We examined Dutch farmers’ determinants of solar PV uptake through multiple regression analyses. Consistent with the literature, our results indicate that behavioural intentions, the perceived importance of renewable energy, and farmers’ innovativeness are the most critical determinants for solar PV adoption. Many farmers mentioned the decreased payback time as the most crucial motive to adopt solar PV. We argue that a stable long-term policy for renewable energy, as implemented in the Netherlands, creates attractive economic conditions for solar PV adoption. At the same time, the payback time is a critical factor in shaping farmers’ intentions and behaviour. We recommend more extensive research using panel datasets of farmers, while we also acknowledge the difficulty of obtaining high-quality panel data, which underlines the uniqueness of our analysis.
Energy labels are used worldwide to overcome the inefficiency in household energy use. Presenting energy efficiency in grade-like categories has been found to induce heuristic decision-making, known as the “class valuation effect”. This study investigates whether visualising energy efficiency using a continuous-scale label increases consumers’ consciousness when purchasing appliances. We examine this question in an online survey with randomised decision tasks conducted in China and the Netherlands. In the Dutch sample, the effectiveness of continuous-scale labels depends on individuals’ holistic cognitive tendency and the type of comparison they are faced with, whereas the Chinese sample is not sensitive to these moderators. Moreover, energy literacy shows mixed influence on individual decisions. Results suggest that representing energy efficiency on continuous scales can be used as supportive visual information to facilitate purchase decisions. Regarding energy education, knowledge that directly links to daily energy use seems to translate well into consumers’ conscious decisions.