1.  NUDGING FÖR ATT RÄDDA KLIMATET (nudging to save the climate) Eva Heiskanen Guest Professor, IIIEE Lund Research Director, Consumer Society Research Centre, University of Helsinki

2. WHAT IS NUDGE? NUDGE ISN’T NEW NUDGE IS IMPORTANT, BECAUSE… CLIMATE CHANGE MITIGATION NEEDS NUDGE EVIDENCE OF RESULTS – BUT NOT HUGE ONES NUDGE SHOULD BE INTEGRATED SOME IDEAS…

3. NUDGE IN A NUTSHELL “... any aspect of the choice architecture* that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic incentives…. Putting the fruit at eye level counts as a nudge. Banning junk food does not”. Thaler, RH & Sunstein CR (2008) Nudge: Improving decisions about health, wealth, and happiness, New Haven, CT., Yale University Press. * aspect of the social/physical environment that makes a particular option more attractive, preferred or even the default choice

4. NUDGE ISN’T NEW We have used behavioural science – in particular in energy conservation – since the 1970s Many nudge ideas like BILLING FEEDBACK SOCIAL LEARNING/MODELING FRAMING CHANGES TO THE PHYSICAL ENVIRONMENT have been used for decades – based on research, but also based on practical experience

5. BUT NUDGE IS IMPORTANT BECAUSE Respected economists challenge the STANDARD ECONOMICS view of rational and calculative behaviour (still dominant in policy) Nudge offers policy makers and administrators a CONVENIENT PACKAGE for insights that scientists and practitioners have tried to convey for decades a common name, a common method (controlled field trials) and a common evidence-base make the message convincing

6. NUDGE PRINCIPLES AND PROCEDURES PRINCIPLES Philosophy of libertarian paternalism Simplification and framing of information Changes to the physical environment Changes to the default option Use of (descriptive) social norms PROCEDURES  evidence-based  testing of interventions in real- life context  randomized control trials

7. NUDGE IS IMPORTANT Nudge offers evidence that IMPLEMENTATION MATTERS Nudge reduces POLITICAL RESISTANCE: easier to enact than binding regulations … while still offering a fairly effective set of instruments … for problems like climate change and energy efficiency which remain unsolved in spite of quite SIGNIFICANT EFFORTS!

8. COMBATING CLIMATE CHANGE NEEDS NUDGE Nudges are appropriate when: choices have delayed effects, when they are complex or infrequent and thus learning is not possible, when feedback is not available, and when the relation between choice and outcome is unclear YES ? Perceived complexity LOW Perceived complexity HIGH LOW involvement decision HIGH involvement decision YES

9. ENERGY/CLIMATE BEHAVIOURS ARE ERROR-PRONE AND SUBJECT TO BIASES Energy behaviours largely routine Energy use is invisible feedback delayed complex, ”expert domain” Energy use learned via social modelling rather than ’theoretically’ energy units and measures are unfamiliar discourages discussion & social learning Large problems like climate change not solvable through individual efforts – no feedback at all kWh ? CO 2 ?

10. Nudge mechanisms used Applications to residential energy efficiency Evidence of effectiveness Simplification and framing of information Feedback on energy consumption: Informative energy bills, metering and displays Extensive research on all scales: tailored and small-scale interventions render 5-20% savings, large field trials about 2% Energy labelling of appliances and buildings Experience on a large scale, but limited evaluation of effects Changes to the physical environment Design for sustainable behaviour, Design with intent (of homes and appliances) Small scale trials, little evidence of the size of the effects Standard in some environments such as hotels (key card removal turns of lights) Prompts as reminders of appropriate behaviour Small scale trials, evidence of effectiveness as part of a package of interventions Changes to the default option Opt-out green electricity offers 95-99% of customers stay with the “green electricity default” Opt-out from smart grid trial (technology installed to control consumption) Large effects (20%) in one survey study Use of descriptive social norms Social comparison billing feedback Large effects in small scale trials (average 11%), smaller effects in large field trials (~ 2% savings) Evidence

11. SOME INDIVIDUAL NUDGES ARE QUITE EFFECTIVE 95-99% of customers stay with the “green electricity default” Duplex printing default ~ 30% Smaller plates -> 20% less food waste

12. USUALLY THE RESULTS ARE NICE, BUT NOT HUGE! Eco kettle only boils as much water as is needed Eco showerdrop tells how much of the recommended 35 liters you have used

13. NUDGE (alone) WILL NOT SAVE THE CLIMATE Because making it part of policy and practice will take a long time and require some heavy legislation One of the most effective nudges (other than defaults) that we found reduced Pringles crisps consumption by 50% by adding 10% red Pringles It is people and stricter policies that will save the planet Nudge can help by offering policy makers and citizens better tools

14. SOME IDEAS Ecodesign Directive and nZEB – user/occupant behaviour can influence actual energy performance a lot  Requirements that support/nudge easy correct operation and use? Ecodesign for efficient behaviour? Empower citizens as nudge agents and support testing and experimentation – learn to see the world through the nudge lens, fix small things at work and in the neighbourhood

15. What is the correct thermostat setting? Karjalainen, S. (2009) Thermal comfort and use of thermostats in Finnish homes and offices Building and Environment 44 (6), 1237-1245 IT DOESN’T NEED TO BE EXPENSIVE

16. http://www.naturvardsverket.se/Nerladdningssida/?fileType=pdf&d ownloadUrl=/Documents/publikationer6400/978-91-620-6642-0.pdf Thanks! eva.heiskanen@helsinki.fi oksana.mont@iiiee.lu.se matthias.lehner@iiiee.lu.se