The psychological surprises underlying energy efficiency choices
While many energy efficiency measures, such as product labelling, have been successful, not everyone is influenced to the same extent. The EVIDENT project used research methods – including ‘nudge’ campaigns, a large-scale survey and games – to gauge which incentives could most effectively alter the behaviour of different groups of energy consumers. EVIDENT investigated consumer behaviour across five use cases. Three were led by the Democritus University of Thrace in Greece. Two of them explored whether peer ‘nudges’ could curb electricity usage, in collaboration with Swedish energy service company CheckWatt (website in Swedish). The third investigated if big data could gauge the effects of behavioural changes on actual energy consumption. These use cases explored the effects of non-price interventions (such as feedback, peer comparisons and tips) on the residential energy consumption of 867 participants. “Consumption decreased by 10 %, on average, due to these interventions, more than observed in similar studies,” says Panagiotis Sarigiannidis, professor at the University of Western Macedonia in Greece, and coordinator of the EVIDENT project. “But because we think some actually increased their overall consumption after photovoltaic panels were installed, there is potential for further reductions.” Trinity College Dublin in Ireland led the final two use cases. The first case study used a game, played by over 1 000 EU residents, to analyse how factors such as personal background as well as environmental and financial knowledge influenced willingness to pay for household appliance repairs. Results showed that older people and students preferred replacing broken appliances, while the unemployed opted for repairs. “Surprisingly, those expressing environment concerns were less willing to pay for repairs, suggesting pro-environmental attitudes alone are insufficient to change behaviour,” remarks Sarigiannidis. The second use case surveyed over 2 000 European citizens to measure environmental, energy and financial literacy levels, exploring how this impacts appliance choices. Participants selected appliances within different scenarios and with varying types and levels of information. “We found a disconnect between knowledge and action,” notes Sarigiannidis. “Environmental or financial knowledge simply wasn’t enough to predict choice. Psychological factors, such as favouring immediate rewards, proved a huge influence.”
More tailored and better targeted interventions
EVIDENT demonstrates that as consumer behaviour data increases, energy efficiency campaigns can be better targeted to specific groups, based on age, income level and so on. A number of policy recommendations were developed by the project. One calls for governments and financial institutions to offer consumers financial incentives to invest in more energy-efficient home appliances. This could include subsidies, low-interest loans and extended warranties. In addition, financial literacy workshops and resources to improve decision-making could be made available to consumers, especially the unemployed and those with lower incomes. “We envisage a day where behavioural insights combine with big data and machine learning to create models that manage energy supply and demand more sustainably,” concludes Sarigiannidis.
Keywords
EVIDENT, behavioural change, energy, electricity, energy consumption, household, policy, financial, environmental, literacy, consumer
