Assistant Professor and Engineering Studiessustainability.berkeley.edu/...WalkerPresentation... ·...

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Joan Walker, Assistant Professor Civil and Environmental Engineering Global Metropolitan Studies

Transcript of Assistant Professor and Engineering Studiessustainability.berkeley.edu/...WalkerPresentation... ·...

Page 1: Assistant Professor and Engineering Studiessustainability.berkeley.edu/...WalkerPresentation... · utility (subject to a budget constraint) 18 Utility function for bus – WT bus

Joan Walker, Assistant ProfessorCivil and Environmental Engineering

Global Metropolitan Studies

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Environment

Economy

Equity

Quality of Life

Technology

Infrastructure

Incentives

Marketing

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Examples of programs to promote 

sustainable behaviors

Modeling behavior

Example of behavioral experiment and model

Current research

Conclusion

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Berkeley program

Larger garbage cans cost more

FREE! Recycling

FREE! Green Waste

57% Diverted

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Efforts of Southern California Edison to  encourage energy conservation

Emails and text messages regarding energy use

Ambient Orb:  red during high energy, green during low

Thomson (2007)

No effect

40% reduction during peak periods

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Ford efficiency leaves

Honda Insight Hybrid – leaves + score

Impact?

Focusing on mpg

7 to 14% less 

gas consumption

Honda with scoring

Avg

10%, max 20%

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Feedback approach 1:

Household energy use Avg

energy use in neighborhood

Feedback approach 2:

Same as above, but with 

High users reduce,Low users increase

High users reduce more,Low users don’t change

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CO2 emissions 

reduced by  100,000 tons

$18M                        

saved

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Boston Area

Reality TV Competition between 3 towns

177 households saved 52 tons of CO2

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Energy Efficiency + Social Networking

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Sticks and carrots

Power of information and feedback

… provided in creative ways

Visualizing impact

Augmented mindfulness

Social norms

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People act in their own interest

They can objectively evaluate all alternatives 

available to them and then choose the one that is best for them.

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Toll Lanes $1.95

Free Lanes$0.00

Toll Lanes $9.55

Free Lanes$0.00

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Detailed analysis shows works with some 

groups, backfires with others (Costa and Kahn, 2010)

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Probability(person

n recycles soda can)

= f( characteristics of the person  & attributes of the environment )

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Basic concepts

Faced with a set of alternatives (consumption 

bundles)

Consumers are able to assign preferences that 

rank these alternatives in terms of attractiveness

Utility function represents mathematically these 

preferences.

Consumers make choices that maximize their 

utility (subject to a budget constraint)

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● Utility function for bus

– WTbus waiting time (hours)– TTbus total travel time (hours)– Cbus total cost of trip (dollars)

●Parameters  represent tastes, and vary by  education, gender, trip purpose, etc.

●Cannot be measured exactly

0 1 2 3bus bus bus busU WT TT C

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0 1 2 3 /bus bus bus busU WT TT C Income

0 1 2 3 /bus bus bus bus busU WT TT C Income

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Choice from among

auto ,bus, walk 

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,

, , ,( )

auto n

auto n bus n walk n

V

V V VeP auto

e e e

, 2 , 3 ,

, 1 , 2 , 3 ,

, 2 ,

//

auto n auto auto n auto n n auto

bus n bus bus n bus n bus n n bus

walk n walk walk n walk

U TT C IncomeU WT TT C IncomeU TT

V

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Gather data from a sample of people

His/her mode choice to campus

His/her sociodemographics

His/her home and work location 

( travel time and travel cost of auto, bus, walk)

Estimate the s that best explain the 

observed choices.

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Joe has 3 options to come to campus

Auto: 

4 min. walk, 8 minutes in car, $4.50

Bus:

15 min. walk, 5 min. wait, 10 min in bus, $4.00

Walk:

40 min. walk

His income is $80,000

What is Joe’s probability of driving?

Plug into

What if campus doubles parking fees?

Update parking cost 

,

, , ,( )

auto n

auto n bus n walk n

V

V V VeP auto

e e e

( ) 0.7P auto

( ) 0.9P auto

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Marginal rate of substitution between time and cost

Value of  Time

Not all time is equal

Value of wait time :

Value of in vehicle time :

time time

cost cost

$ Time

Cost

bus

bus

UMUMRS UMU hour

_ _ cos... ...bus time wait bus time inveh bus t busU TimeWait TimeInVeh Cost

cos... ...bus time bus t busU Time Cost

_ costime wait t

_ costime inveh t

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Cross between psychology and economics

Focus on what really

influences decisions 

as opposed to what we think

influences them

Emphasis on refuting rationality

Clever experiments

Hot area

Dan Arieli’s

Predictably Irrational 

Richard Thaler

and Cass Sunstein’s

Nudge

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What percent of drivers thing they are above 

average?▪

90%

What percentage of Professors think they are 

better than the average professor?▪

94%

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The Power and Value of Green

in Promoting Sustainable Behaviors

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“Experimental Social Science Laboratory”

Subjects paid $15/hour

Our experiment

312 respondents 

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Auto ownership

Mode choice

Route choice

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Scenario

Suburban house

Trip to work: 30 minutes by car, 60 minutes by transit

.

Conventional?

Hybrid?

No Car?

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Estimate t‐test p‐value

Travel time (hours) ‐4.317 ‐21.3 0.00Travel time variance (hours) ‐2.400 ‐3.6 0.00Cost ($) ‐0.490 ‐10.5 0.00Safety dummy 0.620 12.8 0.00FREE! route dummy 0.640 4.8 0.00GHG emissions (pounds/trip) ‐0.069 8.0 0.00

Number of observations 334 subjects * 5 responses eachAdjusted rho‐square 0.412

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1 2 3 6...r r r r r rU TravelTime TravelTimeVar Cost GHG

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VALUE OF GREEN  = $0.14/POUNDVALUE OF TIME =

$8.81/HOUR

in units of cost/units of emissionsemissions emissions

cost cost

Marginal rate of substitution ( ) between emissions and cost

emissions cost

MRSUMU

UMU

... 0.490(toll cost in $)

0.069(greenhouse gas emissions in pounds/trip) -4.317(travel time in hours)...

U

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Students value their time (on average) 

between $6.50‐$9.00/hour

Student value green (on average) 

between $0.10‐$0.40/pound of CO2

Fairly consistent across many

variations

Females more green than males

Social influences positively impact being green

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$

$$

$

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Why concern regarding sustainability?

People!

Why behavioral science?

Human response often dictates success or failure of policy

Cannot force actions

Anticipate actions of people, firms, developers, government 

Challenging

Dealing with humans…

heterogeneous, irrational

Ignoring it is not an answer…

must develop useful tools

Requires multidisciplinary effort

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