Out of sight, out of mind? Consumer awareness and (mis)understanding of electricity bills in the United States

Abstract

This study investigates United States residential electricity bill sensitivity using a nationally representative survey of 1107 consumers. While prior research relies on aggregated monthly, annual, or quarterly data, we directly assess consumer responsiveness to electricity bills. Employing a binary logit model, we find that consumers are more sensitive to monthly bills than annual ones. Factors influencing bill-checking frequency include monthly electric bill amount, family size, age, income, battery electric vehicle ownership, and rural residency. Robustness checks using probit and OLS confirm the consistency of our results. Our analysis using average marginal effects shows that higher electric bills and battery electric vehicle ownership significantly boost the likelihood of regular bill checking, highlighting strong consumer response to price signals. In contrast, age and rural residence reduce frequent monitoring. Additionally, our findings align with the energy vulnerability and electricity poverty literature, emphasizing how financial constraints and household characteristics shape bill engagement. These results underscore the need for targeted policies that enhance consumer awareness and promote energy-efficient behaviors.