Abstract
In a warmer world, demand for air conditioning is growing and now accounts for 10% of all electricity consumption. Promoting sustainable use of air conditioning is often costly and interventions tend to lose their effect over time. Pay-per-use (PPU) billing schemes have been proven useful in promoting responsible usage in other environmental areas such as internet service provision, transportation, waste management, water usage, and even the number of washes when using washing machines. While such PPU schemes should, theoretically, work as well for air conditioning use, there has been little empirical research on its impact in this area. This study addresses this gap with a large-scale natural experiment. Through an archival data analysis of energy consumption data from the National University of Singapore, we found that PPU reduces air conditioning use significantly (between 5% to 9%). We also found that the PPU scheme did not result in negative spillover effects of discomfort or reduced cognitive performance, and may even help users to become more mindful of their unsustainable practices.