Do the Effects of Nudges Persist? Theory and Evidence from 38 Natural Field Experiments

Working Paper: NBER ID: w23277

Authors: Alec Brandon; Paul J. Ferraro; John A. List; Robert D. Metcalfe; Michael K. Price; Florian Rundhammer

Abstract: We formalize a research design to uncover the mechanisms underlying long-term reductions in energy consumption caused by a widely implemented nudge. We consider two channels: technology adoption and habit formation. Using data from 38 natural field experiments, we isolate the role of technology adoption by comparing treatment and control homes after the initial resident moves, which discontinues the treatment for a home. We find that the majority of energy reductions persist in the home after treatment ends and show this persistence is consonant with a technology adoption channel. The role of technology in creating persistent behavior change has important implications for designing behavioral interventions and evaluating their long-term social impacts.

Keywords: nudges; energy consumption; behavioral interventions; technology adoption; habit formation

JEL Codes: C93; D01; D03; Q4


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
HERs (I10)long-term energy reductions (Q41)
technology adoption (O33)long-term energy reductions (Q41)
habit formation (I12)long-term energy reductions (Q41)
HERs (I10)persistent behavior change (D91)
treatment assignment (C90)residents' decisions to move (R23)
treatment assignment (C90)types of residents moving in (R23)
technology adopted (O33)persists after initial resident moves (R21)

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