Nudging the Kingdom’s Kilowatts: Evidence from Saudi Households

This study examines whether low-cost, SMS-based behavioral nudges can reduce residential electricity consumption in Saudi Arabia, a country characterized by subsidized energy prices and high cooling-driven demand. A six-month randomized controlled trial was conducted with 62,750 Saudi households assigned to one of four behavioral treatments against a control group: (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 measurable impact. The peer comparison combined with saving tips, produced the largest decline of approximately 1–2% in monthly consumption. Quantile regression analysis reveals that the treatment effect was concentrated among moderate-consumption households (30th–50th percentiles), with insignificant effects at both tails of the distribution. The findings demonstrate that well-designed messages can shift behavior even where price signals are muted. The results indicate a practical role for behavioral nudges within the broader efficiency and demand management toolkit. In settings like Saudi Arabia with high cooling demand and subsidized prices, a low-cost nudging program can support ongoing efficiency efforts and inform future adjustments to other policy instruments, while acknowledging that the effects are modest, seasonally bounded, and depend on continued iteration.