Does environmental concern change the tragedy of the commons? Factors affecting energy saving behaviors and electricity usage

Electricity consumption produces private goods, such as heat for homes, but fossil fuel consumption impacts the public goods of clean air and water. While self interests can increase usage, social interests, such as global climate change, can impact an individualʹs attitude toward energy consumption. This paper examines the tragedy of the commons using household data, and compares the impact of self and social interests in predicting electricity consumption. Using both stated and observed behavioral data, the results show that self interests have a greater impact on energy saving behaviors and electricity use. We extend the analysis to control for an individualʹs environmental concern and perceived behavioral impact, finding similar results, and supporting the notion that the tragedy of the commons occurs regardless of a personʹs perception or environmental concern. These findings may explain why pro-environmental attitudes do not necessarily lead to pro-environmental behaviors, and it contributes to our understanding of the motivating factors for energy savings and electricity use by examining both stated and observed behaviors. Policies aimed at electricity reduction may have a greater impact if they focus on private interests, such as pricing, rebates, subsidies, and taxes, rather than social interests alone.