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Using Field Experiments to Address Environmental Externalities and Resource Scarcity: Major Lessons Learned and New Directions for Future Research

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  • Michael Price
Abstract
This article provides an overview of the use of field experiments in energy and resource economics. I concentrate on two areas of study; field experiments that (i) speak to the use of dynamic pricing plans to manage the use of electricity and water and (ii) explore the adoption of energy saving technologies. Viewed in its totality, this work suggests that both neo-classical factors such as prices or search costs and behavioral constructs such as salience or social norms influence the use of energy and water. For academics, the studies reviewed provide a deeper understanding of individual behavior and the factors that drive the private provision of public goods. For policy makers, the studies reviewed provide a blueprint outlining ways to combine insights from neo-classical and behavioral economics to manage energy/water demand and mitigate externalities generated through their use.

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  • Michael Price, 2015. "Using Field Experiments to Address Environmental Externalities and Resource Scarcity: Major Lessons Learned and New Directions for Future Research," NBER Working Papers 20870, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20870
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    Cited by:

    1. Timothy N. Cason & Lana Friesen & Lata Gangadharan, 2021. "Complying with environmental regulations: experimental evidence," Chapters, in: Ananish Chaudhuri (ed.), A Research Agenda for Experimental Economics, chapter 4, pages 69-92, Edward Elgar Publishing.
    2. Brent, Daniel A. & Friesen, Lana & Gangadharan, Lata & Leibbrandt, Andreas, 2017. "Behavioral Insights from Field Experiments in Environmental Economics," International Review of Environmental and Resource Economics, now publishers, vol. 10(2), pages 95-143, May.
    3. Matilde Giaccherini & David Herberich & David Jimenez-Gomez & John List & Giovanni Ponti & Michael Price, 2020. "Are Economics and Psychology Complements in Household Technology Diffusion? Evidence from a Natural Field Experiment," Natural Field Experiments 00713, The Field Experiments Website.
    4. Lata Gangadharan & Tarun Jain & Pushkar Maitra & Joe Vecci, 2022. "Lab-in-the-field experiments: perspectives from research on gender," The Japanese Economic Review, Springer, vol. 73(1), pages 31-59, January.
    5. John A. List & Michael K. Price, 2016. "Editor's Choice The Use of Field Experiments in Environmental and Resource Economics," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 206-225.
    6. Werner, Peter & Riedl, Arno, 2018. "The role of experiments for policy design," Research Memorandum 022, Maastricht University, Graduate School of Business and Economics (GSBE).
    7. Matilde Giaccherini & David H. Herberich & David Jimenez-Gomez & John A. List & Giovanni Ponti & Michael K. Price, 2019. "The Behavioralist Goes Door-To-Door: Understanding Household Technological Diffusion Using a Theory-Driven Natural Field Experiment," NBER Working Papers 26173, National Bureau of Economic Research, Inc.
    8. Robert Hahn & Robert Metcalfe & Florian Rundhammer, 2020. "Promoting customer engagement: A new trend in utility regulation," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 121-149, January.
    9. J. Cristobal Ruiz-Tagle & Alejandra Schueftan, 2021. "Nudging for Cleaner Air: Experimental Evidence from an RCT on Wood Stove Usage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 713-743, August.
    10. James R. Meldrum & Hannah Brenkert-Smith & Patricia A. Champ & Jamie Gomez & Hilary Byerly & Lilia Falk & Christopher M. Barth, 2021. "Would you like to know more? The effect of personalized wildfire risk information and social comparisons on information-seeking behavior in the wildland–urban interface," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 106(3), pages 2139-2161, April.

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    More about this item

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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