One thing leads to another: Evidence on the scope and persistence of behavioral spillovers

Abstract

Evaluations of economic interventions usually focus on one target behavior. This study extends the evaluation scope to multiple untargeted behaviors. We evaluate a hot water saving intervention in a natural field experiment. Despite an exclusive focus on hot water, the intervention changes multiple behaviors. Notably, we find a 5.6 percent reduction in room heating energy consumption that persists one year after the intervention. We show that the room heating spillover has important welfare implications.