NUDGING FÖR ATT RÄDDA KLIMATET

(nudging to save the climate)

Eva HeiskanenGuest Professor, IIIEE Lund

Research Director, Consumer Society Research Centre, University of Helsinki

WHAT IS NUDGE?

NUDGE ISN’T NEW

NUDGE IS IMPORTANT, BECAUSE…

CLIMATE CHANGE MITIGATION NEEDS NUDGE

EVIDENCE OF RESULTS – BUT NOT HUGE ONES

NUDGE SHOULD BE INTEGRATED

SOME IDEAS…

NUDGE IN A NUTSHELL“... any aspect of the choice architecture* that alters people’s behaviour in a predictable

way without forbidding any options or significantly changing their economic incentives…. Putting the fruit at eye level counts as a nudge. Banning junk food does not”.

Thaler, RH & Sunstein CR (2008) Nudge: Improving decisions about health, wealth, and happiness, New Haven, CT., Yale University Press.

*aspect of the social/physical environment that makes a particular option more attractive, preferred or even the default choice

NUDGE ISN’T NEW

• We have used behavioural science – in particular in energy conservation – since the 1970s• Many nudge ideas like

BILLING FEEDBACKSOCIAL LEARNING/MODELINGFRAMINGCHANGES TO THE PHYSICAL ENVIRONMENT

have been used for decades – based on research, but also based on practical experience

BUT NUDGE IS IMPORTANT BECAUSE• Respected economists challenge the STANDARD ECONOMICS view of

rational and calculative behaviour (still dominant in policy)

• Nudge offers policy makers and administrators a CONVENIENT PACKAGE for insights that scientists and practitioners have tried to convey for decades• a common name, a common method (controlled field trials) and a

common evidence-base make the message convincing

NUDGE PRINCIPLES AND PROCEDURESPRINCIPLESPhilosophy of libertarian paternalism

• Simplification and framing of information• Changes to the physical

environment• Changes to the default option• Use of (descriptive) social norms

PROCEDURES

evidence-based testing of interventions in real-

life context randomized control trials

NUDGE IS IMPORTANT

• Nudge offers evidence that IMPLEMENTATION MATTERS

• Nudge reduces POLITICAL RESISTANCE: easier to enact than binding regulations

… while still offering a fairly effective set of instruments… for problems like climate change and energy efficiency which remain unsolved in spite of quite SIGNIFICANT EFFORTS!

COMBATING CLIMATE CHANGE NEEDS NUDGENudges are appropriate when: choices have delayed effects,when they are complex or infrequent and thus learning is not possible, when feedback is not available, andwhen the relation between choice and outcome is unclear

YES ?

Perceived complexity LOW

Perceived complexity HIGH

LOW involvement decision

HIGH involvement decision

YES YES

ENERGY/CLIMATE BEHAVIOURS ARE ERROR-PRONE AND SUBJECT TO BIASES• Energy behaviours largely routine • Energy use is invisible

• feedback delayed• complex, ”expert domain”

• Energy use learned via social modelling rather than ’theoretically’• energy units and measures are unfamiliar • discourages discussion & social learning

• Large problems like climate change not solvable through individual efforts – no feedback at all

kWh?

CO2?

Nudge mechanisms used

Applications to residential energy efficiency

Evidence of effectiveness

Simplification and framing of information

Feedback on energy consumption: Informative energy bills, metering and displays

Extensive research on all scales: tailored and small-scale interventions render 5-20% savings, large field trials about 2%

Energy labelling of appliances and buildings

Experience on a large scale, but limited evaluation of effects

Changes to the physical environment

Design for sustainable behaviour, Design with intent (of homes and appliances)

Small scale trials, little evidence of the size of the effects

Standard in some environments such as hotels (key card removal turns of lights)

Prompts as reminders of appropriate behaviour

Small scale trials, evidence of effectiveness as part of a package of interventions

Changes to the default option

Opt-out green electricity offers

95-99% of customers stay with the “green electricity default”

Opt-out from smart grid trial (technology installed to control consumption)

Large effects (20%) in one survey study

Use of descriptive social norms

Social comparison billing feedback

Large effects in small scale trials (average 11%), smaller effects in large field trials (~ 2% savings)

Evidence

SOME INDIVIDUAL NUDGES ARE QUITE EFFECTIVE• 95-99% of customers stay with the “green electricity default”• Duplex printing default ~ 30%• Smaller plates -> 20% less food waste

USUALLY THE RESULTS ARE NICE, BUT NOT HUGE!

Eco kettle only boils as much water as is needed

Eco showerdrop tells how much of the recommended 35 liters you have used

NUDGE (alone) WILL NOT SAVE THE CLIMATE• Because making it part of policy and

practice will take a long time and require some heavy legislation• One of the most effective nudges

(other than defaults) that we found reduced Pringles crisps consumption by 50% by adding 10% red Pringles

It is people and stricter policies that will save the planetNudge can help by offering policy makers and citizens better tools

SOME IDEAS

• Ecodesign Directive and nZEB – user/occupant behaviour can influence actual energy performance a lotRequirements that support/nudge easy correct operation and

use? Ecodesign for efficient behaviour?

• Empower citizens as nudge agents and support testing and experimentation – learn to see the world through the nudge lens, fix small things at work and in the neighbourhood

What is the correct

thermostat setting?

Karjalainen, S. (2009) Thermal comfort and use of thermostats in Finnish homes and officesBuilding and Environment 44 (6), 1237-1245

IT DOESN’T NEED TO BE EXPENSIVE

http://www.naturvardsverket.se/Nerladdningssida/?fileType=pdf&downloadUrl=/Documents/publikationer6400/978-91-620-6642-0.pdf

Thanks!eva.heiskanen@helsinki.fioksana.mont@iiiee.lu.sematthias.lehner@iiiee.lu.se