SPILLOVER AND REBOUND EFFECT OF HOUSEHOLD BEHAVIOURAL ENERGY CONSERVATION INTERVENTIONS

Abstract

We propose a theoretical framework that considers both economic and psychological mechanisms influencing the direction and size of the effect that behavioural interventions have on non-targeted behaviour. Through two field experiment studies, we estimate spillover and rebound effect from energy conservation intervention. We find evidence that goal-setting intervention can trigger a positive spillover from electricity -saving to water-saving. In the first field experiment, the self-set goal group had about 15% lower use of water compared with the control group. In the second experiment, the combination of 10% goal-setting, real-time energy feedback, and tailored information are found can not only promote electricity conservation but also induce 3% to 4% reduction of water consumption. Tailoring energy feedback and goal setting interventions to individual value orientations can increase the possibility of occurrence of positive spillover. We estimate the household consumption pattern after the second campaign and find no evidence of rebound effect.