Analysis of social–Psychological factors and financial incentives in demand response and residential energy behavior

Introduction: Demand response programs are promising approaches to balance supply and demand and reduce or shift peak hour loads. However, the impacts of residents’ behavioral patterns and social–psychological factors on these programs are poorly understood.

Method: We used an extended model of the theory of planned behavior to understand how social–psychological factors, demographics, and household characteristics influence the demand response behaviors (i.e., adjusting A/C and shifting the time of use) of 826 US residents who participated in our study.

Results: We found that low-income households (43.7%) reported as more likely to respond to the behavior of raising A/C thermostat settings when no one is home compared to higher-income residents. Thermal comfort needs (β = 0.34) and participants’ age (β = 0.02) increased the financial incentives requested to accept higher A/C temperatures while someone is home. Thermal comfort needs (β = 0.36) and energy-saving habits (β = −0.11) are the significant predictors of increased incentives requested for higher A/C temperatures when no one is home. Older adults request higher financial incentives for shifting washer and dryer usage than younger residents. Finally, attitudes toward energy saving are the strongest predictor of electricity curtailment behavioral intention, followed by perceived behavioral control, subjective norms, cost and environmental concerns, and energy-saving habits.

Discussion: This finding suggests the potential of social–psychological variables in shaping energy consumption behaviors. This study provides insights for designing effective demand response programs and broadly analyzing energy behavioral patterns.