The Role of Behavioural Economics in Energy and Climate Policy

This article explores how behavioural economics can be applied to energy and climate policy. We present an overview of main concepts of behavioural economics and discuss how they differ from the assumptions of neoclassical economics. Next, we discuss how behavioural economics applies to three areas of energy policy: (1) consumption and habits, (2) investment in energy efficiency, and (3) provision of public goods and support for pro-environmental behaviour. We conclude that behavioural economics seems unlikely to provide the magic bullet to reduce energy consumption by the magnitude required by the International Energy Agency's “450” climate policy scenario. However it offers new suggestions as to where to start looking for potentially sustainable changes in energy consumption. We believe that the most useful role within climate policy is in addressing issues of public perception of the affordability of climate policy and in facilitating the creation of a more responsive energy demand, better capable of responding to weather-induced changes in renewable electricity supply

Sustainable consumption: towards action and impact. : International scientific conference November 6th-8th 2011, Hamburg - European Green Capital 2011, Germany: abstract volume

This volume contains the abstracts of all oral and poster presentations of the international scientific conference „Sustainable Consumption – Towards Action and Impact“ held in Hamburg (Germany) on November 6th-8th 2011. This unique conference aims to promote a comprehensive academic discourse on issues concerning sustainable consumption and brings together scholars from a wide range of academic disciplines. In modern societies, private consumption is a multifaceted and ambivalent phenomenon: it is a ubiquitous social practice and an economic driving force, yet at the same time, its consequences are in conflict with important social and environmental sustainability goals. Finding paths towards “sustainable consumption” has therefore become a major political issue. In order to properly understand the challenge of “sustainable consumption”, identify unsustainable patterns of consumption and bring forward the necessary innovations, a collaborative effort of researchers from different disciplines is needed

Affordances, constraints and information flows as ‘leverage points’ in design for sustainable behaviour

Copyright @ 2012 Social Science Electronic PublishingTwo of Donella Meadows' 'leverage points' for intervening in systems (1999) seem particularly pertinent to design for sustainable behaviour, in the sense that designers may have the scope to implement them in (re-)designing everyday products and services. The 'rules of the system' -- interpreted here to refer to affordances and constraints -- and the structure of information flows both offer a range of opportunities for design interventions to in fluence behaviour change, and in this paper, some of the implications and possibilities are discussed with reference to parallel concepts from within design, HCI and relevant areas of psychology

Cognitive barriers during monitoring-based commissioning of buildings

Monitoring-based commissioning (MBCx) is a continuous building energy management process used to optimize energy performance in buildings. Although monitoring-based commissioning (MBCx) can reduce energy waste by up to 20%, many buildings still underperform due to issues such as unnoticed system faults and inefficient operational procedures. While there are technical barriers that impede the MBCx process, such as data quality, the focuses of this paper are the non-technical, behavioral and organizational, barriers that contribute to issues initiating and implementing MBCx. In particular, this paper discusses cognitive biases, which can lead to suboptimal outcomes in energy efficiency decisions, resulting in missed opportunities for energy savings. This paper provides evidence of cognitive biases in decisions during the MBCx process using qualitative data from over 40 public and private sector organizations. The results describe barriers resulting from cognitive biases, listed in descending order of occurrence, including: risk aversion, social norms, choice overload, status quo bias, information overload, professional bias, and temporal discounting. Building practitioners can use these results to better understand potential cognitive biases, in turn allowing them to establish best practices and make more informed decisions. Researchers can use these results to empirically test specific decision interventions and facilitate more energy efficient decisions

Lessons Learned and Next Steps in Energy Efficiency Measurement and Attribution: Energy Savings, Net to Gross, Non-Energy Benefits, and Persistence of Energy Efficiency Behavior

This white paper examines four topics addressing evaluation, measurement, and attribution of direct and indirect effects to energy efficiency and behavioral programs: Estimates of program savings (gross); Net savings derivation through free ridership / net to gross analyses; Indirect non-energy benefits / impacts (e.g., comfort, convenience, emissions, jobs); and, Persistence of savings

Pursuing Energy-Efficient Behavior in a Regulatory Environment: Motivating Policymakers, Program Administrators, and Program Implementers

This white paper examines how policymakers, program administrators, and program implementers can be motivated to pursue behavioral change in a regulatory environment. For the purposes of this report, behavior change is defined rather broadly, encompassing both behaviors associated with the purchase and installation of energy efficiency technologies as well as behaviors, decisions, and actions that might be thought of as more independent of technology. These include energy use habits, lifestyle choices, and consumption patterns. The insights and lessons discussed in this paper are drawn from a wide variety of sources including interviews with representatives from the energy and utility communities, and program documentation for energy-related programs and projects

Electricity Generation, Electricity Consumption, and Energy Efficiency in the United States: A Dual Climatic-Behavioral Approach

Much of the United States (US) has seen an increase in warm days, decrease in cool days, and increase in extreme weather events. These trends are projected to continue across much of the US and in turn increase the demand for electricity and subsequent greenhouse gas emissions. Ambitious energy efficiency (EE) programs are used across the US by energy utility organizations to reduce electricity demand and emissions. This study examined the impact of climatic variability on electricity consumption, as well as how pro-conservation interventions such as EE programs and experiential learning can be utilized to mitigate residential electricity consumption and emissions. Chapter 2 of this study examined the impact of EE programs on residential electricity consumption taking into account climatic indicators across the contiguous US. A state-by-state analysis suggested that climatic indicators were more explanatory of residential consumption than energy utility organization EE efforts at the state-level. Chapter 3 examined residential electricity consumption for heating and cooling applications explained by energy utility organization EE efforts and climatic indicators in the Southeast US. Indirect spending on EE programs was significantly related to heating and cooling applications and heating degree days, a climatic indicator for number of days over a certain temperature, were significantly related to cooling equipment applications. A survey of 2,450 residential electricity consumers was analyzed. Residents who were aware of EE programs and participated in EE programs were significantly more likely than those who were not to support energy utility organization use of clean energy and government subsidies for EE programs. Chapter 4 provided case study in a Southeast US state where a pro-conservation behavioral intervention was deployed in an elementary school. This chapter utilized a longitudinal design and mixed methodology to assess the effect of curriculum-based experiential learning on environmental literacy and electricity-saving behaviors. Students showed improvement in environmental literacy after interventions were deployed. Normalizing electricity consumption for weather, a decrease in energy consumption of more than 15% in student homes and more than 30% at the focal school was observed. The final chapter provides a discussion of the findings, implications, future research questions, and conclusions

Making Heat Visible: Promoting Energy Conservation Behaviors Through Thermal Imaging

Householders play a role in energy conservation through the decisions they make about purchases and installations such as insulation, and through their habitual behavior. The present U.K. study investigated the effect of thermal imaging technology on energy conservation, by measuring the behavioral effect after householders viewed images of heat escaping from or cold air entering their homes. In Study 1 (n = 43), householders who received a thermal image reduced their energy use at a 1-year follow-up, whereas householders who received a carbon footprint audit and a non-intervention control demonstrated no change. In Study 2 (n = 87), householders were nearly 5 times more likely to install draught proofing measures after seeing a thermal image. The effect was especially pronounced for actions that addressed an issue visible in the images. Findings indicate that using thermal imaging to make heat loss visible can promote energy conservation

Of impacts, agents, and functions: An interdisciplinary meta-review of smart home energy management systems research

Smart home energy management technologies (SHEMS) have long been viewed as a promising opportunity to manage the way households use energy. Research on this topic has emerged across a variety of disciplines, focusing on different pieces of the SHEMS puzzle without offering a holistic vision of how these technologies and their users will influence home energy use moving forward. This paper presents the results of a systematic, interdisciplinary meta-review of SHEMS literature, assessing the extent to which it discusses the role of various SHEMS components in driving energy benefits. Results reveal a bias towards technical perspectives and controls approaches that seek to drive energy impacts such as load management and energy savings through SHEMS without user or third-party participation. Not only are techno-centric approaches more common, there is also a lack of integration of these approaches with user-centric, information-based solutions for driving energy impacts. These results suggest future work should investigate more holistic solutions for optimal impacts on household energy use. We hope these results will provoke a broader discussion about how to advance research on SHEMS to capitalize on their potential contributions to demand-side management initiatives moving forward