Temporal spillovers and habit formation in residential electricity demand response: evidence from large-scale repeated behavioral experiments

Demand response plays a key role in integrating variable renewables and managing new electric loads in residential buildings. However, limited evidence exists on the temporal spillover effects and long-term behavioral impacts of incentive-based electricity demand response (I-EDR) within the residential building sector. This study analyzes four large-scale I-EDR trials in China involving over 46,000 households, examining how monetary incentives and moral suasion affect residential electricity use. Results show that monetary incentives reduce usage during adjacent peak periods, especially among rural and low-income households, but their effectiveness declines over time. Moral suasion initially has limited impact but gradually induces significant savings in urban and high-income communities, with lasting effects observed one month post-intervention, suggesting habit formation. These findings reveal heterogeneous and dynamic behavioral responses across groups and over time, offering insights for designing more equitable and sustainable demand-side programs for residential buildings.