eprintid: 31751
rev_number: 17
eprint_status: archive
userid: 3114
dir: disk0/00/03/17/51
datestamp: 2022-06-10 11:31:10
lastmod: 2022-06-14 05:38:13
status_changed: 2022-06-10 11:31:10
type: workingPaper
metadata_visibility: show
creators_name: Chlond, Bettina
creators_name: Goeschl, Timo
creators_name: Kesternich, Martin
title: More money or better procedures? Evidence from an energy efficiency assistance program
subjects: ddc-330
divisions: i-181000
keywords: public behavioral economics, low-income households, durable replacement, energy poverty, technology adoption, energy efficiency
cterms_swd: Energieeffizienz
abstract: We contribute to the literature on how program design affects program performance among vulnerable groups by studying the effects of varying the subsidy level and program procedures in an energy efficiency assistance program targeting low-income households in Germany. Eligible households receive, upon enrolment, a voucher to subsidize refrigerator replacement. The voucher is redeemed against cash following replacement. Observing the decisions of 77,305 eligible households, our RDD design exploits two quasi-exogenous temporal discontinuities in voucher value and program procedures. We find that a switch from automatic to elective enrolment and more rigid voucher terms reduces the number of vouchers in circulation, but raises the replacement rate among eligible households, the key performance metric, by 4 to 10 percentage points, consistent with psychological theories of goal setting and time management. A subsidy increase of €50 raises replacement rates by 9 to 16 percentage points. The effect of procedural changes is equivalent to an additional €34 in subsidy. Back-of-the-envelope calculations highlight that low-cost changes in procedures that target the behavioral responses of low-income households represent plausible areas of unexploited economies in program design and merit systematic investigation.
date: 2022-05
id_scheme: DOI
id_number: 10.11588/heidok.00031751
schriftenreihe_cluster_id: sr-3
schriftenreihe_order: 0716
ppn_swb: 1806873184
own_urn: urn:nbn:de:bsz:16-heidok-317519
language: eng
bibsort: CHLONDBETTMOREMONEYO202205
full_text_status: public
series: Discussion Paper Series / University of Heidelberg, Department of Economics
volume: 0716
place_of_pub: Heidelberg
pages: 58
citation:   Chlond, Bettina ; Goeschl, Timo ; Kesternich, Martin  (2022) More money or better procedures? Evidence from an energy efficiency assistance program.  [Working paper]     
document_url: https://archiv.ub.uni-heidelberg.de/volltextserver/31751/1/Chlond_Goeschl_Kesternich_2022_dp716.pdf