Behavioral Economics and Energy Consumption: Behavioral Data Analysis the Role of Attitudes and Beliefs on Household Electricity Consumption in Iran

Abstract

The average electricity consumption in Iranian households is higher than the world average. This can be due to price factors (such as cheap electricity in the country) and non-price factors (such as socio-demographic variables and psychological factors). In this study, non-price factors such as socio-demographic variables and psychological factors in the electricity consumption of urban households in Tehran were investigated. In this regard, using the theoretical foundations of behavioral economics and the psychology of planned behavior, this issue was analyzed. This study collected information on household electricity consumption behavior through a questionnaire and fieldwork from 2560 Tehran households. Results Using econometric techniques, linear regression was estimated, the dependent variable of which was electricity consumption (45 days in winter 2019) and its independent variables including socio-demographic variables (age, sex, number of household members, income) and The variables of the theory of planned behavior (attitude, mental norms and perceived behavioral control) showed that income and the number of household members have a significant and positive effect on electricity consumption, but gender has no significant effect. Of the psychological variables, only perceived behavioral control has a significant effect on electricity consumption. These results show that the consumer does not have a positive attitude towards saving, and mental and social norms do not encourage him to reduce electricity consumption, and they are not effective in consumption control. Finally, the study results were analyzed using behavioral biases that may cause attitudes and beliefs not to lead to action.