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Social-Psychological Factors and Energy Behaviors Chien-fei Chen CURENT course November 6th, 2014 Knoxville, Tennessee.

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Presentation on theme: "Social-Psychological Factors and Energy Behaviors Chien-fei Chen CURENT course November 6th, 2014 Knoxville, Tennessee."— Presentation transcript:

1 Social-Psychological Factors and Energy Behaviors Chien-fei Chen CURENT course November 6th, 2014 Knoxville, Tennessee

2 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings (Barriers) Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Feedback, Norms, Goal- setting, Framing)

3 Decision-making: understand the process of how individuals make decisions in energy domain and the impact of behaviors on energy use and the environment as a whole. Awareness: connection between engineering profession to the consequences of its activities on the society. Improvement: engineering technology designs and make broader impact. Persuasion: explain and discuss the ramifications of developments in engineering and engineering works to the public. Big Picture! Why Should You Care?

4 Typical Social Science Studies Theories Evidences Collect Data (cross- sectional survey; experiments) Analyze Modeling Interpretation

5 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Norms, Goal- setting, Framing)

6 Energy and Behavioral Change What are the factors affecting energy use? How to reduce energy consumption? How to change people’s behaviors over time?

7 Creating an Energy Revolution “A revolution doesn’t happen when society adopts new tools, it happens when society adopts new behaviors” (Glay Shirky, Digital Guru) “Mitigate future climate change will be made by energy consumers, rather than suppliers… not a straightforward and easily achievable goal” (EIA, 2009)

8 U.S. Energy Consumption in 2010

9 Questions What is your average monthly electricity consumption? What is average American household electricity consumption?

10 A Household Consumption in TN

11 Average Monthly Electricity Consumption per Household in 2012 Tennessee Average: 1217KWh Highest in the nation (ranked 2 nd ) US. Average 940 KWh

12 Evidences of Energy Behaviors Behavioral approach could save 123 million metric tons of carbon annually in year 10 from a study of 17 household actions, representing 20% of household direct emissions or 7.4% of U.S. national emissions. Types of household behaviors (based on cost and frequency of action) could result in a 22% reduction in household and personal transportation energy use over a 5-8 year period (Laitner & Ehrhardt-Martinez, 2009). In crisis situations, energy saving has resulted in immediate, community-level electricity savings of 25% in 6 weeks and post-crisis savings of 8-10% (Leighty & Meier, 2010). Feedback programs and devices could save electricity from 4-12% (Ehrhardt-Martinez, et al. 2010).

13 How Much Can Household Save Energy? Researchers identifying more than 100 separate conservation and energy efficiency measures (all cost-effective) that could be taken in a short period of time (Laitner and Martinez, 2009). Based on a Monte Carto probability simulation, an energy saving potential on the order of about 9 Quads (9% of US energy use) compared to current use.

14 Carbon Emission and Behavioral Change 1-14

15 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Norms, Goal- setting, Framing)

16 Traditional Economic and Engineering Models Typical responses to energy crisis: Find new energy resources Develop technology – engineers’ job Provide financial incentives for people to reduce consumption, to adopt more efficient technologies Assumption of rationality People are instrumental and self- interested, consistent, cost-benefit based.

17 Without DeliberationWith Deliberation In-output model Behaviors controlled by environment Emphasize human agency Mindful or cognitive process Not Empathizing: Internal judgments Cognitive process Interpersonal relationships (Asch, 1951, Sherif, 1935) Empathizing: Attitudes Perceptions Motivations Actors are mindless robots Actors are mindful Assumptions of Human Behaviors

18 Decision-Making Models Social Cognitive Theory (Bandura, 1986) Theory of Planned Behavior (Ajzen, 1991) Norm Activation Model (Schwartz, 1977) Social Norm Approach (Claidini,1994 and others) Prospect Theory (Kahneman & Tversky, 1979) To identify factors or in targeting behavioral change (intervention)

19 Social Cognitive Theory (Bandura, 1986) Human agency involves deliberative ability to make choices & regulate behavior A triadic, dynamic, & reciprocal interaction. Behavior Personal Factors (cognitive, affective, & biological events) Environmental Factors (norms)

20 Theory of Planned Behavior (Icek Ajzen, 1991)

21 Norm Activation Model (Schwartz, 1977) Awareness of consequences Ascription of responsibility Personal Norms Pro-social or environmental behaviors

22 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Norms, Goal- setting, Framing)

23 Social-psychological Factors influencing Energy Conservation in China Investigated how social norms, behavioral control, attitudes, energy concern, perceived consequences influence energy saving intention and behavior Sampled 584 employees from electricity companies in Jiangsu Province, China Based on the Theory of Planned Behavior and the Norm Activation Model.

24 Factors Predicting Energy Conservation Behaviors

25 Results of Social-Psychological Factors Affecting Electricity Saving Behaviors (241 UTK students ) Barriers to save electricity (-0.26) ** Support of renewable (0.30) * Social rewards (0.03) Personal norms (0.34)* Energy concern (0.33) ** Global warming consequences (0.19)* Global warming consequences (0.19)* Economic benefits (0.09) Electricity Saving Behaviors * P <0.05; ** p<0.01, green boxes on the left were not significant Demographics (gender, age, race, political orientation, rent)

26 Result of Social Psychological Factors Affecting Support of Renewable Energy Electricity saving behaviors (-0.22)** Energy conservation attitudes (0.18)* Social rewards (-0.08) Personal norms (0.34) Energy concern (0.24)* Global warming consequences(0.18)* Economic benefits (-0.10) Support of Renewable Energy Familiarity with renewable(0.05) Political orientation (0.20) * * P <0.05; ** p<0.01, green boxes on the left were not significant

27 Symbolic Values: Social Status and Green Behaviors People are more likely to choose green products rather than non-green products when status motives were made salient (Griskevicious et al., 2010) Especially when the choice were made in the public and the green product is more expensive.

28 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Norms, Goal- setting, Framing)

29 Advanced Meters Meters that measure and record usage data at hourly intervals or more frequently, and provide usage data to both consumers and energy companies at least once daily. Advanced meters include basic hourly interval meters, meters with one-way communication, and real-time meters with built-in two-way communication capable of recording and transmitting instantaneous data. To encourage energy conservation, utilities must directly or indirectly provide this information to consumers to contextualize the information, break down barriers and motivate actions.

30 Public Acceptance of Smart Meters- CURENT Project M-turk respondents: 817 Awareness, Knowledge, Attitudes toward the Installation of Smart Meters, Interests in having smart meters, Intention to use smart meters or in-home displays, Satisfaction, Electricity habit change, Perceived ease of use and usefulness, Perceived pricing, Privacy Health and environmental concerns Willingness of reducing electricity use to save environment Money consciousness, trust on utility company Lasting change, smart phone application Opinions on demand response program: Time of Use pricing and appliance auto setting Demographics

31 Factors Influencing Acceptance of Smart Meter

32 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Feedback Program)

33 Intervention/Strategies of Changing Behaviors Feedback programs Non-economic motivation strategies can effectively enhance household energy saving Social norms: descriptive and injunctive norms shape people’s behaviors; developing strategies in a social context Goal setting: define what people are trying to attain and be able to evaluate their progress Commitments: help people to sure their actions are consistent with their ideals

34 Layers of Energy Feedback Technologies

35 Advantages of Feedback Programs Eliminates the need for prescriptive program (financial incentives) Maximizes household options Allows for targeted recommendations Engages people in an active learning process Empowers people to become part of the energy solution (Source: Ehrhardt-Martinez from Garrison institute)

36 Indirect vs. Direct Feedback Indirect feedback helps people to see larger patterns in energy use Direct feedback help people to understand the impact of small changes and the implications of specific end uses Both influence people in different ways More and more approaches use both types

37 Average Household Electricity Savings of Historical Program by Feedback Type

38 Potential Resource Savings: 20-35% Real-Time Plus Feedback w/Smart Program Plus Smart Application of S.S. Insights

39 Social Norms Approach: Opower

40 1-40

41 Goal Framing Three main goals (Lindenberg, 2008)  Normative Goal  Gain Goal  Hedonic Goal Behaviors can be framed based on different goals

42 Effectiveness of Feedback Programs # of Studies Energy Savings Sources Social Norms142-10%Alcott (2009), Ayers et al. (2009), Ehrhardt-Martinex (2009), Nolan et al. (2008), Schultz et al (2007), Wilhite et al. (1999) Goal Setting45-17%Seligman (1978), Winett et al. (1982), Van Houwellingen (1989), Abrahamse et al. (2007) Competitions28-32%Petersen et al. (2007) (68,300 kWh) Sintov, et al. (2010)(75,000 kWh) Commitment15-8%Staats et al. (2004) Source: Garrison Institute

43 Demand Response vs. Overall Conservation Programs A meta analysis reports that energy saving of Peak Load Shifting Program is 3%, while energy conservation promotion program is 10%; based on 36 studies implemented between 1995- 2010 (Martinez, Donnelly and Laitner, 2010).

44 Persistence of Savings The evidence from 27 of the 58 studies suggests that if the feedback is persistent, the savings are persistent over time (Garrison Institute) StudyCountryTypeDuration Months Savings Mountain (2006)CanadaReal Time Aggregate 13Persistent conservation effect Mountain (2008)CanadaReal Time Aggregate 24Persistent conservation Neilsen (1993)DenmarkEnhanced Billing36Persistent conservation effect Staats et al (2004) NetherlandsEnhanced Billing36Energy savings increased from 4.8% (at 8 months) to 7.6% (at 24 months) Wilhite and Ling (1995) NorwayEnhanced Billing36Increased from 7.6% at the end of year two to 19% at the end of year three. Wilhite et al. (1999) NorwayEnhanced Billing21Increased 6-8% right after the intervention, 4% after 2 years

45 Persistence of Energy Savings Are savings persistent when feedback is removed? The supportive social environment provided by ecoTeams made the difference StudyCountryTypeDurationSavingsPersistence of savings Van Houwellingen (1989) Netherland s Real time Aggregate (the indicator) 2412.3%Energy conservation did not persist after the monitors were removed StudyCountryTypeDurationSavingsPersistence of savings Staats et al. (2004) NetherlandsEnhanced Billing 367.6%Energy savings increased from 4.8% (at 8 months) to 7.6% (at 24 months). Saving persisted long after the intervention ended

46 Social Psychological Factors and Energy Behaviors Why should you care? Factors Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors Influencing Public Acceptance of Smart Meters Intervention (Norms, Framing)

47 Focus Theory of Normative Conduct Focus theory posits that norms affect human behavior systematically and significantly but only in situations where the norm is salient (focal) for the individual (Cialdini, Reno, & Kallgren, 1990; Kallgren, Reno & Cialdini, 2000) Experiments: descriptive (what is typically done) vs. injunctive norms (what is approved)  Littering increased in a littered environment; littering was reduced only when descriptive norms was activated in a clean environment.  Influence of injunctive norms was effective regardless of whether the environment was clean or littered.

48 Message Framing and Norms

49 Experiment: Sign 1 Source: Goldstein, Cialdini, Griskevicius, Schultz, Nolan

50 Experiment: Sign 2

51 Result of Experiment

52 Study 1a: Motives to Conserve Energy California neighborhood survey (Dr. Noah Goldstein)

53 Study 1b: Social Norms Experiment Conducted an experiment and placed signs on 300 residents’ doors encouraging them to conserve energy Varied the reasons for conserving on the signs to be in accordance with the various motivating factors from Study 1a

54 Energy conservation appeal (A/C): Result of Study 1b

55 Conclusions from Studies 1a & 1b People estimate social norms as the least powerful motivators of energy conservation, this research found signs communicating the social norms were the most effective. Attitudes and behaviors are not consistent

56 Below “Please reuse your towels” Control: HELP SAVE THE ENVIRONMENT. You can show your respect for nature and help save the environment by reusing your towels during your stay Social Norm: JOIN YOUR FELLOW GUESTS IN HELPING TO SAVE THE ENVIRONMENT. Almost 75% of guests who are asked to participate in our new resource savings program do help by using their towels more than once. You can join your fellow guests in this program to help save the environment by reusing your towels during your stay. Recycling Towels in Hotels: Evidence of Descriptive Norms Goldstein, Cialdini, & Griskevicius (2008, J of Consumer Research)

57 Back-fire Effect

58 Back-fire Example

59

60 Prospect Theory and Message Framing Framing (risk-aversion)  Prospect theory: people respond to loss and gain messages differently (Kahneman & Tversky, 1979)  For example- say there are 600 lives in danger  Program A: "200 people will be saved"  Program B: "there is a 1/3 probability that 600 people will be saved, and a 2/3 probability that no people will be saved"

61 Persuasion Messages Loss Framing (risk-taking behavior)  Program C: "400 people will die"  Program D: "there is a 1/3 probability that nobody will die, and a 2/3 probability that 600 people will die”

62 Message Framing and Electricity Saving- CURENT Project What kind of messages are more effective to influence people’s attitudes and intention to save electricity? Four manipulations on how to convey the benefits of saving electricity  Goal framing: environmental vs. financial  Temporal framing: long-term vs. short-term  Control group

63 Condition 1: Financial, Long-Term

64 Condition 2: Financial, Short-Term

65 Condition 3: Environmental, Long-Term

66 Condition 4: Environmental, Short-Term

67 Results of this Experiment Environmental message are more effective than the money saving ones in producing positive attitudes. Short-term and long-term messages did not influence individuals’ intention to save electricity but the efficacy of saving electricity.

68 Why should you care? Factors of Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors of Influencing Public Acceptance of Smart Meters Intervention: Understanding Barriers Demand Response and Incentives

69 Example Study: Financial Incentives and DR Goal of the study: Financial incentives Desired DR behaviors 1) Adjusting Heating/AC thermo setting by 2-3 o F when at home 2) Adjusting Heating/AC thermo setting by 5 o F or more (or shutting down) before leaving home 3) Allowing utility companies to adjust Heating/AC thermo setting by 2-3 o F when needed 4) Shutting down Heating/AC for 10 (and 30) minutes in response to emergency messages Impact: more accurate estimation of adjustable loads as a function of financial incentives Method: an online survey on 711 U.S. residents across 48 states ?

70 Example Study: Financial Incentives and DR Acceptance rates in respondents

71 Financial Incentives, DR, and Customer Segmentation Extended goal: better marketing for DR, based on customer segmentation Method: cluster analyses & comparisons of measured social- psychological and demographic variables across clusters Impact: possible increase in adopting rates as a result of good marketing Results: three clusters were identified– the most, medium, and the least cooperative cluster. Features of the most cooperative cluster (  ): Suggestions for utility companies:  Focus on the cooperative customers  Appropriately address customers’ concern for comfort  Build relationship with customers, enhance trust The most Cooperative Cluster Lower Comfort Need in Summer Higher Concern for Environmental Impacts Higher Trust in Utility Company Younger More Renters More Smaller Homes

72 Social Psychological Factors and Energy Behaviors Why should you care? Factors of Influencing Electricity Savings Decision-making Models Evidence of Energy and Behaviors Demand response, incentives and behavioral changes Factors of Influencing Public Acceptance of Smart Meters Intervention: Understanding Barriers

73 Recognizing Barriers – Individual Level Barriers Attitudes & behaviors are inconsistent Rebound boomerang effect Technology bias/perceiv ed risk Difficulty in changing established values, behaviors

74 Recognizing Barriers – Structural Level Barriers Political and policy issues Cultural factor Geographic factors (climate, suitable locations Social- economic and Infrastructural factors

75 Barrier: What Do Americans Think about Energy and Efficiency? Source: Malbach et al., Ch8, People-center Initiatives for Increasing Energy Savings Most Americans believe our country wastes energy in harmful ways despite many don’t believe in climate change People are concerned about the availability and affordability of energy (77%) Most Americans are willing to participate in transforming the way we use energy People report they should install a solar panel to reduce home energy (71%) and should buy a hybrid car (62%) Most Americans are eager to reduce energy use and support policies to reduce the nation’s energy use People report they should be spending several thousand dollars to make their home as energy efficient as possible (78%) Percentage of people who reported buying CFLs is 7% Percentage of people who reported upgrading to energy efficient appliances over the past year is 4% Percentage of people who reported making their home more energy efficient by installing new windows, insulation, solar panels, etc. is 2% AttitudesBehavior (Gallup 2007)

76 Barriers: Issue of Rebound Economic incentives can be effective in certain situations but can also be ineffective -A California utility provided information about the cost of running appliances and devices a coffee pot is 3 cents per pot; a 3-ton central AC system is 36 cents per hour -Your low energy use in comparison with your neighbor’s high energy use could inspire to use more energy -New energy end users consume as much as 30% of saving

77 Barriers: Structural or Organizational Level Energy Efficiency Gap - a significant underinvestment in energy efficiency measures whose benefits outweigh their costs – among residential consumers Unrealized reductions in energy consumption is 30-60% (Ehrhardt-Martinez, 2011) Rigid organizational structures and cultures that hinder innovation Insufficient knowledge and experience regarding behavior change strategies

78 Strategies: Applying Social-psychological Elements 1. Targeting: specific audiences and actions 2. Informing: policies, producers, programs; 3. Motivating: norms, networks, goals through communication channels 4. Empowering: removing barriers to provide & enable better choices

79 Targeting: Scale, People and Actions Assess specific actions, target audience, sources of diversity across households Community based actions might include: home weatherization and deep retrofits Smaller homes with greater amenities Use PV systems, LEDs Transporting choices

80 Informing: Consumers, Producers

81 Motivating: Norms, Networks, Commitments Community-based Social Marketing - Identify barriers and benefits - Commitment: Move good intentions to ACTION - Prompts: Reminders to conserve energy - Build social norms - Marketing your message (Framing; Risk Communication Strategies) - Incentives: Enhancing motivation to act - Removing external barriers - Evaluate outcomes (Amy Hollander, 2011)

82 Empowering: Providing Better Choices Providing alternative environment: Choice architecture: people make decisions in an environment where many features, noticed and unnoticed, can influence their decisions. The person who creates that environment is, a choice architect (Thaler and Sunstein, 2008). Overcoming the status quo bias Social Movement and Campaigns

83 Conclusions (1) Human beings are not always rational. Traditional economic theories alone fail to adequately account for energy efficiency gap (Hofmeister, 2010). Advanced meter technologies provide significant electricity savings; yet, development of energy- efficient technologies is not sufficient. Smart meters won’t be smart enough by themselves. Understanding social psychological factors that influence energy decisions is important.

84 Conclusions (2) Information programs may be effective in changing attitudes but are not very effective in changing behaviors in some situations. Greater rates of savings is possible given the right combination of program designs and policy support. Sometimes behavior change is faster than technology development; more behavior change strategies are needed. The need to build a culture of energy conservation: “engaging people crates a culture of mindful as opposed to mindless consumption” (Ehrhardt- Martinex, 2011).


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