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bEhaVioral Insgihts anD Effective eNergy policy acTions

Periodic Reporting for period 2 - EVIDENT (bEhaVioral Insgihts anD Effective eNergy policy acTions)

Reporting period: 2022-06-01 to 2024-02-29

The EVIDENT project seeks to explore the impacts of behavioural biases on energy-related decision-making through a series of pilot use cases, including quasi-experiments, experiments and big data analyses. The overarching aim of this project is to devise and evaluate energy efficiency interventions which leverage technological advances, to reduce energy consumption and inform policy development. The EVIDENT project seeks to understand the main factors which impact an individual’s decision-making around energy consumption. Factors such as financial literacy (i.e. knowing how to make informed and effective financial decisions), environmental literacy (i.e. the understanding, skills and motivation to make decisions that will positively impact the environment), energy literacy (i.e. knowing how much energy you and your appliances use) and their impact on energy investment decisions. Additionally, EVIDENT seeks to support researchers and scientists by developing an online platform to allow for open sharing of data, and hosting of experiments in energy domains. This EVIDENT platform provides a space for researchers, policymakers and the general public to participate, share and learn about research on behavioural biases in energy efficiency. This advanced ecosystem will facilitate novel means of analysis and will aid in the dissemination of results across stakeholders in an engaging, collaborative and ongoing manner.

This project is important for society as it aims to a) advance the knowledge on how to address the energy efficiency gap, thus supporting consumers to use more efficient appliances reducing consumption, b) explore groups which have been under-represented in past research, such as those who rent their home, senior citizens and those with lower household incomes; through enhancing our understanding of the factors which impact energy behaviours for this group more effective supports can be developed, c) support society through enhancing our understanding of the behavioural biases which impact early appliance replacement decisions. By identifying factors which impact consumers' decisions to replace or repair a malfunctioning product, more effective supports can be developed to reduce the likelihood of early replacement by consumers.
The overall work performed so far in the scope of the EVIDENT project includes the: a) design and implementation of experiments based on social comparison-related nudges, b) design of an experiment to elicit consumers' attitudes towards pricing, c) design of a survey for eliciting consumers' financial literacy along with their environmental literacy, d) insights for policymakers for designing experiments at a larger scale, e) application design for implementing social comparison nudges.

In more detail, EVIDENT has carried out an assessment of how behavioural biases and financial literacy affect the consumers’ behaviour and explored the relevant literature with respect to the design of field and quasi experiments. Furthermore, the leverage of big data analytics has been investigated, while the appropriate big data technologies, frameworks, and architectures have been identified. Additionally, an early version of the serious game has been developed, while additional features and improvements are being incorporated. Also, the specifications for the randomized control trials and surveys, along with the analytical qualitative and quantitative tools and the respective econometric models, have been defined. Finally, an early version of the EVIDENT platform has been developed. The platform offers researchers the ability to design experiments and questionnaires.
The EVIDENT project aims to propose and assess energy efficiency interventions to reduce energy use and influence policy development. While there have been significant technological advances to support consumer reductions in energy consumption, such technologies are underutilised in practice. Low adoption of energy-efficient devices despite cost reductions is referred to as the "energy paradox." To address this, an understanding of attitudes, biases, and skill deficits affecting individual energy-related behaviour and decision-making is needed. The EVIDENT project intends to determine how home energy users may be effectively supported to make more efficient energy decisions, minimising the energy efficiency gap. This will be accomplished using randomised control trials, big data analysis, surveys, and qualitative analyses to explore the impacts of energy behaviour modification initiatives on consumption behaviours.

EVIDENT will increase understanding of how financial and environmental literacy affect energy usage. Consumers often make bad decisions, with little uptake of energy-efficient technologies despite cost savings. EVIDENT will improve our understanding of these factors in two ways: a) Novel measures of financial literacy and environmental literacy have been developed based on best practices across the literature to date; these measures will allow for a more cohesive analysis of both environmental and financial literacy, along with an enhanced understanding of the individual impacts of sub-components of each on energy behaviour; and b) by exploring the direct impacts of environmental and financial literacy on energy decision-making in the use cases w will enhance the understanding of how these factors may be leveraged to address the energy efficiency gap.

Also, through the variety of pilots, the EVIDENT project will highlight how consumers may be best supported to engage in energy behaviour change, and which methodologies are most effective in achieving this. As the EVIDENT project includes several methodological approaches to public engagement, including a field trial in collaboration with energy providers, a serious game and more traditional quasi-experiments, analysis of how participant engagement (measured through participant recruitment and attrition) and broader behaviour change is supported by each approach can be achieved. While many behaviour change interventions have been developed, engagement within interventions remains a key challenge. For behaviour change to be effective on such a large scale, an analysis of which methodologies should be used to mediate such intervention provision is needed. Through the completion of various use cases, EVIDENT will enhance the understanding of the impacts of differing methodologies.

EVIDENT will also clarify the impact of serious games on energy-related behaviour change. As noted, consumer engagement in behaviour change interventions remains a challenge. To address this engagement challenge, novel approaches to intervention delivery are needed with serious games posited as one such approach. While serious games have shown effects across various fields, limitations to their use for energy-related behaviours have been noted. EVIDENT aims to address these concerns through the EVIDENT serious game by addressing the limitations of research to date in the design of the analysis surrounding the serious game. Further, specific attention will be directed towards participant engagement, to explore if serious games are an effective means to address this challenge. As serious games are intended to address the engagement challenges of other intervention delivery approaches, data on participant recruitment and retention will present valuable findings on whether serious games effectively address these concerns.
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