Social norms, pro-environmental identity, and finances: what motivates households to participate in energy efficiency programs?

Abstract

Municipal governments, often in collaboration with utilities, have implemented a range of energy efficiency programs to encourage homeowners and businesses to adopt energy efficiency upgrades. Energy efficiency holds promise to reduce energy consumption, reduce greenhouse gas emissions, improve public health, and reduce energy bills. However, these programs often suffer from poor participation and have typically had limited success. In this analysis, we use novel data to understand the relationship between social norms, pro-environmental identity, and household finances to understand program participation and retrofit decision-making. We find that the variables that predict retrofit decision-making do not explain a household’s initial decision to contact an energy efficiency program. We suggest that the processes that drive households to contact energy efficiency programs—a necessary first step in improving energy efficiency—are different from the processes that explain why households decide to upgrade their homes.