Consumers Prefer Penalties Over Rewards to Commit to Sustainability
The article discusses how using immediate rewards or penalties can help people commit to conserving electricity in the long term. The researchers tested new electricity products with rewards and penalties to see if they would encourage consumers to save energy. They found that offering upfront rewards with delayed penalties did not work well as a commitment tool for electricity conservation. People's individual traits like aversion to loss and discounting the future affected their choices of electricity products. This study suggests that designing incentives and energy products based on behavioral insights could help consumers commit to saving energy in the long run.