Behavioral anomalies and energy-related individual choices: The role of status-quo bias

Julia Blasch, Claudio Daminato*

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

The literature on the energy-efficiency gap discusses the status-quo bias as a behavioral anomaly that potentially increases a household's 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 household's 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.

Original languageEnglish
Pages (from-to)181-214
Number of pages34
JournalEnergy Journal
Volume41
Issue number6
DOIs
Publication statusPublished - Nov 2020

Keywords

  • Appliances replacement
  • Behavioral anomalies
  • Energy efficiency
  • Residential energy consumption
  • Status-quo bias

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