We conducted a six-month randomized controlled trial with 62,750 Saudi households assigned to one of four behavioral treatments: (i) peer-to-peer comparisons, (ii) peer comparisons with energy-saving tips, (iii) high-alert messages, and (iv) a bundled intervention. Some treatments reduced electricity use, while others had no impact. The peer comparison combined with saving tips, delivered via SMS, produced the largest decline of about 2% in monthly consumption. The findings show that well-designed messages can shift behavior even where tariffs mute price signals. Our results indicate a practical role for behavioral messaging within the broader efficiency and demand management toolkit. In settings like Saudi Arabia with high cooling demand and subsidized prices, such a low-cost nudging program can support ongoing efficiency efforts and inform future adjustments to other instruments, while remaining mindful that the effects are modest and depend on continued iteration.

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Darandary, Abdulelah
Energy Macro and Microeconomics
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