Machine Learning about Treatment Effect Heterogeneity: The Case of Household Energy Use

<jats:p> We use causal forests to evaluate the heterogeneous treatment effects (TEs) of repeated behavioral nudges toward household energy conservation. The average response to treatment is a monthly electricity reduction of 9 kilowatt-hours (kWh), but the full distribution of responses ranges...

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Bibliographic Details
Main Authors: Knittel, Christopher R, Stolper, Samuel
Other Authors: Sloan School of Management
Format: Article
Language:English
Published: American Economic Association 2022
Online Access:https://hdl.handle.net/1721.1/144195
Description
Summary:<jats:p> We use causal forests to evaluate the heterogeneous treatment effects (TEs) of repeated behavioral nudges toward household energy conservation. The average response to treatment is a monthly electricity reduction of 9 kilowatt-hours (kWh), but the full distribution of responses ranges from -40 to +10 kWh. Households learn to reduce more over time, conditional on having responded in year one. Pre-treatment consumption and home value are the most commonly used predictors in the forest. The results suggest the ability to use machine learning techniques for improved targeting and tailoring of treatment. </jats:p>