COVID-19 and the Formation of Energy Conservation Routines: Disentangling the Relative Importance of Attention and Income Shocks

29 Pages Posted: 7 Feb 2023

See all articles by Andreas Löschel

Andreas Löschel

Ruhr-University Bochum

Laura Razzolini

University of Alabama - Department of Economics, Finance and Legal Studies

Madeline Werthschulte

ZEW – Leibniz Centre for European Economic Research

Michael K. Price

University of Alabama - Department of Economics, Finance and Legal Studies

Date Written: 2022

Abstract

We examine the impact of the COVID-19 pandemic on the formation of energy conservation routines. To do so, we use data from two nationwide surveys of German households, conducted before and during the pandemic. Across the two survey waves, we document a significant increase in the likelihood respondents report engaging in a variety of energy conservation routines, such as unplugging electronic appliances after use and switching off lights when leaving a room. To understand what drives this result, we provide evidence that observed energy saving actions reflect an increased attention devoted to energy consumption while staying at home, as opposed to income shocks experienced during the pandemic. We also rule out an increase in pro-environmental concern during the pandemic as driver of our results. Rather, we find evidence consistent with a “finite pool of worry,” that might have even limited the impact of increased attention on the adoption of energy saving routines. In sum, our findings highlight the importance of consumer attention for the adoption of conservation routines to fight global climate change in a post-pandemic world.

Keywords: Energy conservation routines, COVID-19, income shocks, attention, nationwide surveys

JEL Classification: D91, Q49, C83

Suggested Citation

Löschel, Andreas and Razzolini, Laura and Werthschulte, Madeline and Price, Michael K., COVID-19 and the Formation of Energy Conservation Routines: Disentangling the Relative Importance of Attention and Income Shocks ( 2022). ZEW - Centre for European Economic Research Discussion Paper No. 22-068, Available at SSRN: https://ssrn.com/abstract=4321457 or http://dx.doi.org/10.2139/ssrn.4321457

Andreas Löschel (Contact Author)

Ruhr-University Bochum ( email )

Bochum
Germany

Laura Razzolini

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
2053488067 (Phone)

HOME PAGE: http://https://sites.google.com/a/cba.ua.edu/laura-razzolini/home

Madeline Werthschulte

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim
Germany

Michael K. Price

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

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