Stability of green default adherence in a costly moment of change

Daniel Bregulla, Maria V. Zwicker, Sebastian Berger

2023

Green energy defaults in tariff choices have received substantial research and practical attention. In this longitudinal field study, we examine their effectiveness in a potential moment of change that can disrupt routine decision-making. Exploiting a merger in the Swiss energy landscape, we test how a novel branding and a price change affect people’s adherence to a green energy default.

Our central result – based on 143,313 meters (data 2019-2022) – is that defaults are very stable. Of those 120,150 with strict default adherence 2019-2021, 99.4% also stick with the green energy default after the merger. The minority who change largely move to cheaper, more conventional energy tariffs.

The findings provide a novel perspective on energy tariff defaults and offer more evidence for their effectiveness. Our results indicate that while percentage-wise large, objectively moderate price changes do not meaningfully impact the effectiveness of defaults.