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Making energy efficiency pro-poor: insights from behavioural economics for policy design

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  • Never, Babette

Abstract

This paper reviews the current state of behavioural economics and its applications to energy efficiency in developing countries. Taking energy efficient lighting in Ghana, Uganda and Rwanda as empirical examples, this paper develops hypotheses on how behavioural factors can improve energy efficiency policies directed towards poor populations. The key argument is that different types of affordability exist that are influenced by behavioural factors to varying degrees. Using a qualitative approach, this paper finds that social preferences, framing and innovative financing solutions that acknowledge people’s mental accounts can provide useful starting points. Behavioural levers are only likely to work in a policy package that addresses wider technical, market and institutional barriers to energy efficiency. More research, carefully designed pre-tests and stakeholder debates are required before introducing policies based on behavioural insights. This is imperative to avoid the dangers of nudging.

Suggested Citation

  • Never, Babette, 2014. "Making energy efficiency pro-poor: insights from behavioural economics for policy design," IDOS Discussion Papers 11/2014, German Institute of Development and Sustainability (IDOS).
    • Handle: RePEc:zbw:diedps:112014
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    File URL: https://www.econstor.eu/bitstream/10419/199424/1/die-dp-2014-11.pdf
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    Cited by:

    1. Geofrey Okoboi & Joseph Mawejje, 2016. "The impact of adoption of power factor correction technology on electricity peak demand in Uganda," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-14, December.
    2. Never, Babette, 2015. "Social norms, trust and control of power theft in Uganda: Does bulk metering work for MSEs?," Energy Policy, Elsevier, vol. 82(C), pages 197-206.
    3. Geofrey Okoboi & Joseph Mawejje, 2016. "The impact of adoption of power factor correction technology on electricity peak demand in Uganda," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-14, December.

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    Keywords

    Armut und Ungleichheit; Energie;

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