Is Nudging a Cost-Effective Solution to Promoting Energy Efficiency?

by Sam Zastrow, Low Income and Online Market Manager 

Promoting energy efficiency behaviors and programs could be as easy as a nudge. A nudge is a subtle way of influencing behavior without offering material incentives or imposing punishments. Many utilities are already nudging their customers towards improved energy efficiency through their energy bills.  Including comparison information for homeowners – whether comparing a homeowner’s energy use to their neighbors or an average customer  - often causes ratepayers to reflect on their own actions and motivates improved home energy efficiency.

“When you get a bill with a long list of numbers, it’s unlikely to mean very much to you. But if you see you’re using much more than your next door neighbor, let’s say, it suddenly becomes personal,” says David Halpern, director of the Behavioural Insights Team (BIT). Nudges exploit our desire to fall in line with the attitudes and behaviors of our peers, but they also appeal to policy makers and utility providers looking for cost efficient, energy education solutions. “Nudges appeal to policy makers because they generally don’t require huge investments and yet have the potential to make a big impact,” said Halpern in a recent CNN post.

Subliminal influences or nudges are not new, but they are gaining a new level of attention as they are used to influence more sustainable behaviors. Nudging is a cost-effective solution to breaking into habitual behavior, though it is not enough of a motivator for everyone, it can help motivate people to take a second look at their actions.

A recent CNN article, “Is a ‘nudge’ in the right direction all we need to be greener?” by George Webster highlights a few nudge examples to improve energy efficiency.

 Research has found that people are more conscious of their energy use when they can see it in action. Designer Muhyeon Kim has designed a power outlet that displays how much power it is using. If nothing is plugged into the outlet the light is off. When energy is being used by an appliance or electronic device plugged into the outlet, energy use is displayed and tracked in orange. If the appliance is using power in a standby mode, energy use is displayed and tracked in blue.

Eco Reminders, from hu2, are wall design reminder stickers and functional wall decals for energy and water savings.

Deliver results specific to your efficiency and sustainability strategies, goals and filings with energy efficiency education and outreach solutions from Energy Resources. We deliver expertise in energy efficiency:

• Education, Outreach and Event Marketing
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Contact us to develop an energy efficiency education and outreach strategy relevant to your energy, rate, energy efficiency and renewable programs and products.