How important is information format? An experimental study of home energy audit programs

Among alternative regulatory responses, information provision programs are receiving increasing attention despite the decidedly mixed evidence about their effectiveness. This paper provides detailed experimental evidence to demonstrate that for one important example of an information program, the use of energy audits to stimulate residential energy conservation, the effectiveness of the program is highly sensitive to the information processing behavior of the users of the information. Simple changes in the format of the information provided to homeowners produced marked improvements in the efficiency of consumer choices. The study illustrates Stern's conclusion in a recent issue of this journal that laboratory experimentation provides a useful alternative to model-based analysis of natural experiments, especially for policy design issues involving information acquisition and processing. The paper also offers conclusions about improving the effectiveness of home energy audits, as well as the entire class of information provision programs.