Traditional approaches to encouraging consumers to reduce their energy consumption have centered around campaigns that inform consumers of the environmental impact of their actions. Research from economist Hunt Allcott examined the effectiveness of using social pressure to reduce consumption. His study evaluated a program in which an energy company sent some of their customers reports indicating whether they used more, less, or about the same amount of energy as their neighbors. Other customers received no reports. Allcot then compared the energy consumption of the customers who received the reports to those who did not. Which finding from Allcott’s study, if true, would most directly support the use of consumption reports as a strategy for encouraging consumers to reduce their energy consumption? Customers who received reports of lower consumption compared to their neighbors increased their energy use until it matched the level of their neighbors.eliminateCustomers who received reports of higher consumption compared to their neighbors later reduced the amount of energy they used. eliminateA year after the reports were distributed, overall energy consumption for the community had decreased by about 20%.eliminateCustomers who did not receive consumption reports decreased their energy use at a rate similar to those who received reports.
Question
Traditional approaches to encouraging consumers to reduce their energy consumption have centered around campaigns that inform consumers of the environmental impact of their actions. Research from economist Hunt Allcott examined the effectiveness of using social pressure to reduce consumption. His study evaluated a program in which an energy company sent some of their customers reports indicating whether they used more, less, or about the same amount of energy as their neighbors. Other customers received no reports. Allcot then compared the energy consumption of the customers who received the reports to those who did not. Which finding from Allcott’s study, if true, would most directly support the use of consumption reports as a strategy for encouraging consumers to reduce their energy consumption? Customers who received reports of lower consumption compared to their neighbors increased their energy use until it matched the level of their neighbors.eliminateCustomers who received reports of higher consumption compared to their neighbors later reduced the amount of energy they used. eliminateA year after the reports were distributed, overall energy consumption for the community had decreased by about 20%.eliminateCustomers who did not receive consumption reports decreased their energy use at a rate similar to those who received reports.
Solution
The finding that would most directly support the use of consumption reports as a strategy for encouraging consumers to reduce their energy consumption is: "Customers who received reports of higher consumption compared to their neighbors later reduced the amount of energy they used." This finding directly shows that the reports had an impact on the behavior of the customers who received them, leading them to reduce their energy consumption.
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