Using Field Experiments to Address Environmental Externalities and Resource Scarcity: Major Lessons Learned and New Directions for Future Research

This article provides an overview of the use of field experiments in energy and resource economics.

I concentrate on two areas of study:

Field experiments that

• Speak to the use of dynamic pricing plans to manage the use of electricity and water and
• Explore the adoption of energy saving technologies

Viewed in its totality, this work suggests that both neo-classical factors such as prices or search costs and behavioral constructs such as salience or social norms influence the use of energy and water. For academics, the studies reviewed provide a deeper understanding of individual behavior and the factors that drive the private provision of public goods. For policy makers, the studies reviewed provide a blueprint outlining ways to combine insights from neo-classical and behavioral economics to manage energy/water demand and mitigate externalities generated through their use.