Friday, 2 April 2010

Saving energy: money and peer

The article "Innovation: Only mind games will make us save power " in New Scientist draws my attention in that it shows some study results that go against a common belief. In the US, the government encourages people to use "smart meters" which can show users how much do the electricity they are using cost, in an attempt to reduce energy consumption. However, according to the study conducted by Paulos, this measure gives an opposite results. It turn out that when people use some small electricity appliances such as computer monitor, the meter would show a low price in which they consider affordable; therefore, thank to the low price showing on the meters, instead of turning off, they would rather leave the applicance on. Schultz and Cialdini report that the more effective measure is from peer pressure. Although, this pressure might not really exist, as long as they think that other people would do it, they would do it too. For example, many people would turn off the light in their office because they belive that their colleague would do so too. The researchers suggest that such a kind of psychological measure would be more effective than the cost reported by the smart meters.

This article reminds me of the reading in "the cost of social norms" in Ariely(2008). When people are thinking in term of social relation, they would pay more attention to relationship and tend to conform to the behavior of people around them. This makes people save energy when they think that other people also do. They don't want to be criticized by their peer and be more responsible as a member of the community. Howver, when they are reminded of market norms from the electricity cost that the meter tells them, they would consider only the cost, which is affordable for them. Now, without the reminder of social norms, they have no responsibility for the community. As a result, this reminder is less effective. However, the article just inform only the case of small appliances. I think that the smart meters is likely to work with an appliance that consume a lot of energy such as air conditioner or iron. Now the amount of money they are going to lose is no more negligible. When users can see how fast their money is drained out by those appliances, they are likely to feel like saving energy.
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References
Barras, C. (2010, April 1) Innovation: Only mind games will make us save power. New Scientist Retrieved April 2, 2010 from http://www.newscientist.com/article/dn18727-innovation-only-mind-games-will-make-us-save-power.html
Ariely, D. (2008) Predictably irrational. HaperCollins. Great Britain.

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