Abstract
A demand response program is a promising tool to increase the share of intermittent renewable energy in the electricity production mix. It requires that households adapt their energy consumption to the level of energy production in order to balance the grid, i.e., decrease (increase) their consumption during peak load (peak energy production) event. However, energy conservation efforts suffer from many cognitive biases that impede the optimization of electricity consumption and thus demand flexibility.
This project presents a randomized field experiment aimed at introducing demand response with nonmonetary incentives coupled by a set of nudges addressing these cognitive biases. Our tested nudges are cheap, easy to implement.