Scandinavian Working Papers in Economics

EfD Discussion Paper,
Environment for Development, University of Gothenburg

No 18-19: The power of nudging: Using feedback, competition and responsibility assignment to save electricity in a non-residential setting

Rebecca Afua Klege, Martine Visser (), Saugato Datta and Matthew Darling

Abstract: We use behavioural insights to design nudges, leveraging social comparison and assignment of responsibility, aimed at reducing electricity consumption in a large provincial government office building with 24 floors, a total of 1008 occupants. Results from a randomized control trial show that floors participating in a treatment with inter-floor competitions and tips reduced energy consumption by 9%, while those that also included floor-wise “energy advocates” reduced energy consumption by 14% over a period of 5 months. These reductions – which are among the largest demonstrated in any utilities setting – cause us to re-evaluate the conventional wisdom that asserts that it is harder to nudge behaviour in non-residential settings (such as office buildings) where users do not face the financial consequences of their behaviour than it is in residential settings, where they benefit financially from conservation efforts.

Keywords: Energy Conservation; Behavioural Nudges; Social Competition; Randomized Control Trials

JEL-codes: C21; C90; D03; L94; Q41

Language: English

33 pages, December 1, 2018

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