Template-Type: ReDIF-Article 1.0
Author-Name:  Julia Blasch and Claudio Daminato
Title:  Behavioral Anomalies and Energy-related Individual Choices: The Role of Status-quo Bias
Classification-JEL: F0
Pages:  181-214
Volume:  Volume 41
Issue:  Number 6
Year:  2020
Abstract:  The literature on the energy-efficiency gap discusses the status-quo bias as a behavioral anomaly that potentially increases a householdıs energy consumption. We empirically investigate the extent to which the status-quo bias is linked to residential electricity consumption through two channels: non-replacement of old appliances and overuse of appliances. Using data from a large household survey conducted in three European countries, we find that our measure of status-quo bias is a significant predictor of both the age of home appliances and the level of a householdıs consumption of energy services. This is also reflected in the total electricity consumption, which is found to be around 6% higher when the household head is status-quo biased. We thus provide empirical evidence that the status-quo bias may represent a substantial barrier to increasing residential energy efficiency. Our findings prompt policy makers to design instruments that take this barrier into account.
Handle: RePEc:aen:journl:ej41-6-Daminato
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=3583
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