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The power of nudging: Using feedback, competition and responsibility assignment to save electricity in a non-residential setting

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  • Klege, Rebecca Afua
  • Visser, Martine
  • Datta, Saugato
  • Darling, Matthew

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.

Suggested Citation

  • Klege, Rebecca Afua & Visser, Martine & Datta, Saugato & Darling, Matthew, 2018. "The power of nudging: Using feedback, competition and responsibility assignment to save electricity in a non-residential setting," EfD Discussion Paper 18-19, Environment for Development, University of Gothenburg.
  • Handle: RePEc:hhs:gunefd:2018_019
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    2. Hoffmann, Christin & Thommes, Kirsten, 2024. "Can leaders motivate employees’ energy-efficient behavior with thoughtful communication?," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Energy Conservation; Behavioural Nudges; Social Competition; Randomized Control Trials;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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