Scaling Contests for Cost-Effective Energy Conservation

The energy sector in low-and-middle-income countries is characterized by high rates of particulate and carbon emissions per unit of electricity generated and low electricity reliability. To reduce air pollution levels and increase reliability, utilities have been, amongst other programs, encouraging urban households to conserve energy and reduce electricity use. Vietnam has been at the forefront of exploring innovative strategies to achieve cost-effective energy conservation. In the summer of 2023, researchers partnered with the utility in Hanoi (EVN) to conduct an experimental evaluation of contests and contracts for energy conservation. The researchers found both strategies delivered similar levels of energy conservation but that contests were nearly twice as cost-effective. Building on this ongoing partnership with EVN Hanoi, the research team is conducting follow-up experiments that test the ability of contests to scale within budgetary constraints and over longer time horizons. The proposed strategies may help to conserve energy in the summer months, thereby reducing particulate and carbon emissions as well as outages.