Experimental Design
A Swiss utility contacts around 2800 households selected among their customers via postal mail to take part in the experiment. This target group supposedly has a heat pump at their home (requirement for participation). Participants that registered to take part in the study are randomly allocated between the treatment group and the control group after the registration. Afterwards, all participants (treatment and control group) are invited to fill in a baseline survey by e-mail.
The intervention is incentive compatible: This means that the treated participants are endowed with a virtual study budget. Between January and April 2024 we contact the households in treatment group first with an e-mail that includes detailed instructions for the next 15 weeks. Then secondly, our intervention (sending SMS to inform them on the study electricity price, the days of validity and the cost per day for an average heat pump) provides treated households with weekly high price signals. Then the treated households can decide whether they want to pay this price for the households’ heat pump consumption (we will then deduct the monetary amount from the virtual study budget), or whether they want to lower the room temperature to reduce energy costs (we will then deduct a smaller monetary amount from the virtual study budget depending on the actual electricity curtailment). Depending on this, the virtual study budget will be reduced accordingly week by week. During this period, we do not contact the households in control group.
In May – after the 15-week study period, we invite the households in the treatment and control group by e-mail to fill in a short follow-up survey. The follow-up survey collects information on the participants’ experience during the intervention and the behaviour regarding their heat pump. Further, we get the smart meter data of the participating households from the utility. Using this data we calculate the remaining balance of the virtual study budget, which we will then pay out to the participants. Also, the households in the control group will be informed about their participant compensation pay-out.