Lightbulbs and other implementation bloopers

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From the IEA DSM Task 24 expert workshop in Wellington, NZ on February 15. An overview of some of the better-known stories where DSM policy or programme implementation fell short - often due a misplaced understanding of human rationality.

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Lightbulbs and other implementation bloopers

  1. 1. Implementationbloopers - regulationNZ Task 24 workshop, Feb 15, 2013
  2. 2. or: it ain’t easy to be a policymaker
  3. 3. or: it ain’t easy to be a policymaker
  4. 4. or: it ain’t easy to be a policymaker
  5. 5. or: when good intentions lead to unintended consequences Jevons paradox Rebound
  6. 6. or: when good intentions lead to unintended consequences Jevons paradox Rebound Prebound
  7. 7. (policy and programme) design issues (it’s not just regulation)
  8. 8. information campaigns: translation issues Heatpumps are very energy efficient!
  9. 9. information campaigns: translation issues Heatpumps are very energy efficient! Right?
  10. 10. perverse outcomes:nudge/normative feedback Abstract JEL Codes: Q41, D03, D72 Energy Conservation “Nudges” and Environmentalist Ideology: Evidence from a Randomized Residential Electricity Field Experiment“Nudges” are being widely promoted to encourage energy conservation. We show that thepopular electricity conservation “nudge” of providing feedback to households on own and peers’home electricity usage is two to four times more effective with political liberals than withconservatives. Conservatives are more likely to increase their consumption if told that they arenot big electricity users relative to their neighbors.Dora L. CostaUCLA Department of Economics9272 Bunche HallLos Angeles, CA 90095-1477and NBERcosta@econ.ucla.eduMatthew E. Kahn
  11. 11. BAU classical economics example: insulation subsidies Australia vs New Zealand
  12. 12. BAU classical economics example: insulation subsidies They’re a big success here...Warm Up New Zealand reaches its target ! EECA: Energ""" http:##www"eeca"govt"nz#news#warm$new$zealand$reac""" EECA: Energy Efficiency and Conservation Authority Warm Up New Zealand reaches its target 29 November 2012 MEDIA STATEMENT FROM MINISTER OF ENERGY AND RESOURCES, PHIL HEATLEY The Government insulation programme Warm Up New Zealand: Heat Smart has reached its original target of insulating 188,500 homes - ahead of schedule and below budget, Energy and Resources Minister Phil Heatley announced today. "This successful programme has directly improved the living conditions of many thousands of New Zealanders," he said. "Better home insulation has a really significant effect on health and well-being. "The programme has also supported manufacturing in New Zealand and created jobs. "It has promoted the benefits of insulation. Anecdotal evidence suggests prospective tenants and home buyers are now far more likely to enquire about the insulation of a house they want to buy or rent, because they know it will mean a warmer, drier, healthier home," the Minister said. The four-year programme, run by the Energy Efficiency and Conservation Authority (EECA), was launched by Prime Minister John Key in 2009, providing a subsidy for the installation of ceiling or underfloor insulation. Earlier this year, the Government announced that it would be extended to insulate a further 41,500 homes, taking the total to 230,000. Thanks to savings made within the programme, this will be achieved for the same overall funding of $347 million.
  13. 13. example: insulation subsidiesOver the ditch, it was a problem...
  14. 14. example: insulation subsidiesOver the ditch, it was a problem...
  15. 15. example: insulation subsidiesOver the ditch, it was a problem...
  16. 16. who do you design for?
  17. 17. who do you design for?
  18. 18. who do you design for?http://vimeo.com/2727318
  19. 19. and are they ready for it?
  20. 20. and are they ready for it?
  21. 21. and are they ready for it?
  22. 22. and are they ready for it?
  23. 23. REGULATION: enforcing policywithout changing social norms
  24. 24. REGULATION: enforcing policywithout changing social norms
  25. 25. REGULATION: just thinkingabout it can be too much...
  26. 26. REGULATION: just thinkingabout it can be too much...
  27. 27. REGULATION: enforcing policy without thinking?
  28. 28. however:

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