Transporting behavioral insights to Low-income households: A field experiment on energy efficiency investments


Chlond, Bettina ; Goeschl, Timo ; Kesternich, Martin ; Werthschulte, Madeline


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URN: urn:nbn:de:bsz:180-madoc-692716
Document Type: Working paper
Year of publication: 2024
The title of a journal, publication series: ZEW Discussion Papers
Volume: 24-079
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C93 , D91 , Q49,
Keywords (English): transportability , low-income households field experiment , randomized controlled trial , governmental welfare programs , energy efficiency , technology adoption
Abstract: Many industrialized countries have recognized the need to mitigate energy cost increases faced by low-income households by fostering the adoption of energy-efficient technologies. How to meet this need is an open question, but “behavioral insights” are likely components of future policy designs. Applying well-established behavioral insights to low-income households raises questions of transportability as they are typically underrepresented in the existing evidence base. We illustrate this problem by conducting a randomized field experiment on scalable, low-cost design elements to improve program take-up in one of the world’s largest energy efficiency assistance programs. Observing investment decisions of over 1,800 low-income households in Germany’s “Refrigerator Replacement Program”, we find that the transportability problem is real and consequential: First, the most effective policy design would not have been chosen based on existing behavioral insights. Second, design elements favored by these insights either prove ineffective or even backfire, violating ‘do no harm’ principles of policy advice. Systematic testing remains crucial for addressing the transportability problem, particularly for policies targeting vulnerable groups.




Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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