It's so Hot in Here: Information Avoidance, Moral Wiggle Room, and High Air Conditioning Usage

Environmental policies based on information provision are widespread, but have often proven ineffective. One possible explanation for information’s low effectiveness is that people actively avoid it. We conduct an online field experiment on air conditioning usage to test the theory of moral wiggle room, according to which people avoid information that would compel them to act morally, against the standard theory of information acquisition, and identify conditions under which each theory applies. In the experiment, we observe how exogenously imposing a feeling of moral obligation to reduce air conditioning usage and exploiting natural variation in the cost of doing so, given by outside temperature, influences subjects’ avoidance of information about their energy use impacts on the environment. Moral obligation increases information avoidance when it is hot outside, consistent with the moral wiggle room theory, but decreases it when outside temperature is low. Avoiding information positively correlates with air conditioning usage. These findings provide guidance about tailoring the use of nudges and informational tools to the decision environment.

[1]  O. Edenhofer Climate change 2014 : mitigation of climate change : Working Group III contribution to the fifth assessment report of the Intergovernmental Panel on Climate Change , 2015 .

[2]  H. Allcott,et al.  Social Norms and Energy Conservation , 2011 .

[3]  Siddharth Suri,et al.  Conducting behavioral research on Amazon’s Mechanical Turk , 2010, Behavior research methods.

[4]  J. List,et al.  Testing for Altruism and Social Pressure in Charitable Giving , 2009, The quarterly journal of economics.

[5]  Eleonora Freddi Do People Avoid Morally Relevant Information? Evidence from the Refugee Crisis , 2017, Review of Economics and Statistics.

[6]  Devin G. Pope,et al.  Attribution Bias in Consumer Choice , 2018, The Review of Economic Studies.

[7]  G. Loewenstein,et al.  Information Avoidance , 2016 .

[8]  Miriam Fischlein,et al.  Information Strategies and Energy Conservation Behavior: A Meta-Analysis of Experimental Studies from 1975 to 2012 , 2013 .

[9]  R. Newell,et al.  Nudging Energy Efficiency Behavior: The Role of Information Labels , 2013, Journal of the Association of Environmental and Resource Economists.

[10]  J. Andreoni Social Image and the 50-50 Norm: A Theoretical and Experimental Analysis of Audience Effects , 2009 .

[11]  K. Gillingham,et al.  Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence , 2013, Review of Environmental Economics and Policy.

[12]  Michael Greenstone,et al.  Measuring the Welfare Effects of Residential Energy Efficiency Programs , 2017 .

[13]  Joel J. van der Weele Inconvenient Truths: Determinants of Strategic Ignorance in Moral Dilemmas , 2014 .

[14]  C. Vlek,et al.  A review of intervention studies aimed at household energy conservation , 2005 .

[15]  June A. Flora,et al.  Real-time Feedback and Electricity Consumption: A Field Experiment Assessing the Potential for Savings and Persistence , 2013 .

[16]  Thomas Dietz,et al.  Narrowing the US energy efficiency gap , 2010, Proceedings of the National Academy of Sciences.

[17]  Christopher R. Knittel,et al.  Are Consumers Poorly Informed About Fuel Economy? Evidence from Two Experiments , 2017, American Economic Journal: Economic Policy.

[18]  Hunt Allcott,et al.  Consumers' Perceptions and Misperceptions of Energy Costs , 2011 .

[19]  G. Loewenstein,et al.  Projection Bias in Predicting Future Utility , 2000 .

[20]  Joel J. van der Weele,et al.  UvA-DARE (Digital Academic Repository) Self-image and willful ignorance in social decisions , 2017 .

[21]  Justin M. Rao,et al.  Avoiding The Ask : A Field Experiment on Altruism , Empathy , and Charitable Giving ∗ , 2011 .

[22]  A. Jaffe,et al.  The energy paradox and the diffusion of conservation technology , 1994 .

[23]  H. Allcott,et al.  Evaluating Behaviorally-Motivated Policy: Experimental Evidence from the Lightbulb Market , 2014 .

[24]  D. Valenti Modelling the Global Price of Oil: Is There Any Role for the Oil Futures-Spot Spread? , 2018 .

[25]  M. Dekay,et al.  Public perceptions of energy consumption and savings , 2010, Proceedings of the National Academy of Sciences.

[26]  Emerson Melo,et al.  A Variational Approach to Network Games , 2018 .

[27]  Devin G. Pope,et al.  Projection Bias in the Car and Housing Markets , 2012 .

[28]  D. Fessler,et al.  Nobody's watching? Subtle cues affect generosity in an anonymous economic game. , 2005 .

[29]  Francesca Gino,et al.  Self-Serving Justifications , 2015 .

[30]  Roberto A. Weber,et al.  Exploiting moral wiggle room: experiments demonstrating an illusory preference for fairness , 2007 .

[31]  Mathias Ekström Do watching eyes affect charitable giving? Evidence from a field experiment , 2012 .