The power of nudges to save electricity
Article originally published by Environment for Development (EfD): https://www.efdinitiative.org/news/use-nudges-saves-electricity
Traditional economics is dependent on the concept of increasing prices to effectively influence behavioural change however there are a variety of psychological tools which can be equally effective in influencing changes in consumer behaviour. EfD researchers explore the use of nudging as a tool to help reduce energy use in non-residential areas of Cape Town, South Africa.
Commercial buildings account for a large amount of energy consumption around the world contributing to significant greenhouse gas emissions. In the past technological advances (such as energy-efficient appliances and smart sensors) have helped reduce high energy demands however in developing countries these solutions are often not practical. Behavioural interventions have proven effective in reducing energy consumption in residential areas through behavioural nudges such as receiving conservation information or competing against households with ‘best practice’. Historically behavioural tools have only been explored within residential areas where the change in behaviour could directly financially benefit a household, however limited research has explored if these same nudges could be successful in a non-residential setting.
In a recent study, The Power of Nudging: Using Feedback, Competition, and Responsibility Assignment to Save Electricity in a Non‑Residential Setting, led by EfD researchers, Dr Rebecca Klege and Prof. Martine Visser (director of EfD South African hub, EPRU), behavioural nudges to help reduce energy consumption were explored within a non-residential area of Cape Town.
“Currently all the action regarding nudges and psychological tools in economics has been within the residential sector. This study provides a unique look at African specific non-residential energy conservation. This is particularly important in a developing country where there is more room to incorporate this research into policy,” says Dr Rebecca Klege, EfD researcher and lead author of the study.
The importance of working with non-residential buildings
The study centred around one office building which had smart electricity meters installed and was split into three groups investigating the effects of various behavioural nudges on energy consumption. The first group was sent “repeated general energy conservation information emails and participated in weekly inter-floor competitions”, while the second group also received “energy conservation information and participated in weekly inter-floor competitions” but were also assigned a weekly floor "energy advocate" to encourage and coordinate behavioural change around energy consumption in the building. The third group acted as a control and received no intervention.
A key aspect of the study centred around the fact that there was no direct financial benefit for participants through energy conservation but rather a benefit for the greater good. “This is a relatively unique aspect of this type of research and provides valuable information on how we can influence behaviour even when people aren’t paying for a service or resource,” explains Dr Rebecca Klege.
Implications for policy
Results from the study showed that through behavioural nudges energy consumption can be reduce by up to 13% depending on the level of intervention. This suggests that behavioural nudges can be an effective tool in conserving energy within both residential and non-residential areas.
“Policy makers shouldn’t shy away from nudges, nor should they discard the concept. This study has provided clear evidence that [nudges] can work even when people aren’t directly responsible for the costs of electricity as seen in these non-residential areas,” says Dr Rebecca Klege.