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Changing Energy
Behaviour – What Works?
A review of international precedent
Task 24 – DSMU Webinar by Karl Purcell, SEAI.
1
Outline
1. Introduction to SEAI’s Behavioural Economics Unit
2. Search Strategy and Focus
3. Encouraging Households to Save Energy – What Works
4. Encouraging Businesses to Save Energy – What Works
5. Changing Transport Behaviour – What Works
6. School-Based Programs – What Do We Know?
7. What’s Missing from the Literature?
8. Recommendations for Future Research
2
3
Introduction to SEAI’s
Behavioural Economics
Unit
SEAI Behavioural Economics Unit
Behavioural Research
Experimental Design
Psychology/Carbon Mgmt.
Karl Purcell Marek Bohacek Andrew O'Callaghan
Behavioural Problem Diagnosis
Experiment Implementation
Behavioural Science
Data Modelling
Language Programming
Psychology/Neuroscience
Phil Hemmingway
Research and Development
Program Manager
Research Evaluation
What We Do…
5
What is Behavioural Economics?
Behavioural
Economics
Economics
PsychologySociology
“Context Matters”
“Incentives Matter”
“Culture and
Society Matters”
• TOU Pricing
• Payback Period
• Action of Neighbours
• Perception of
Consequences
• Feedback
• Hassle Factors
• Availability Bias
7
Search Strategy and
Focus
We examined…
8
We read a lot of papers and reports…
9
Database
Search
• 2,423
papers
identified
Abstract
Review
• 695
relevant
papers
Detailed
Review
• 176
papers
included
Really…we read a lot of papers and reports…
10 www.seai.ie
Metered
Savings/Observed
Behaviour
Included a control group
over lengthy time period
We Summarised Each Paper in a Standard Template
11 www.seai.ie
We then Agreed Common Themes and Wrote a Policy Note…
12 www.seai.ie
So, what did we find?
Encouraging
Households to Save
Energy
13www.seai.ie
Encouraging Households to Save Energy
~10%
~4%
~3%~4%
~3% ~+5pp*
EAST Framework
15
Make it Easy – Defaulting people into savings programs
16 www.seai.ie
Opt-in Opt-out
20%
5.9% 2%
98%
Make It Easy - Automating Energy Savings
• Estimated Savings of 4.5%-5% of
annual household gas use
– compared to households with
programmable timers, room
thermostats and TRVs
• Auto-learning algorithm can save
another 2.8%!
• Make it Easy!
Make it Attractive - Framing
18 www.seai.ie
Make it Social
19 www.seai.ie
It would take a price increase of 70%
to generate the same savings!
Make it Social – Set Goals and Public Commitments
• Encourage people to set energy saving goals
• More effective if the goal is publicly visible
– Online list of participants
• More effective if users set realistic goals of about 10-15%
• Goal setting can produce savings of 10%
20 www.seai.ie
Make it Timely
21 www.seai.ie
Make It Timely– Instant Feedback
Average Savings of 3% Average Savings of 5% - 7%
23
Encouraging the Installation of
Energy Efficient Measures &
The Purchase of Energy
Efficient Appliances
• Quick Home Energy Check-ups
• 1 Hour Free Check-up
• Offered CFL’s, Aerators, Efficient – flow,
shower heads, Water Tank Heat Wraps
• Save between 2.7% and 5.5% of energy
• Training of auditors also effective
• Phone-based Audits
• “Gaps add up, it’s like having a football
sizes hole in your wall”
• Homes who received call from trained
auditors twice as likely to claim a rebate
(grant)
• No difference in actual energy savings!
How can we prompt more homeowners to take action?
24
• CBSM approach in North Carolina
• Treatment included the following:
Instant rebates on lightbulbs
In-store signage for a week before one-day event
Flyers placed in customers bags for a week before
event
Promotion at home energy show
Direct mail postcards to homes within 10-mile
radius
Email notifications to utility customers
Sticky notes placed on locally delivered
newspapers
• Results: Sales increased by 896%!
However, no statistically significant difference in
energy use between control and treatment homes
Are community based social marketing approaches more effective?
25 www.seai.ie
• Similar to Warmer Homes
• 23,500 robo-calls
• 15,000 door hangers
• 7,000 home-visits
• Sign-up assistance events
• Control group: 1% completed
weatherization rate
• Treatment group: 6% completed
weatherization rate
Encouraging Applications to a Free Weatherization Program
26 www.seai.ie
• Adding lifetime costs or 5 year running cost very popular
• Medium effect sizes in lab experiments
• Very small effect sizes in field trials
Hard to implement/measure
More “noise”
• Bonus/Malus and Subsidy systems can have
unintended consequences
Encourage purchase of bigger appliances
• Need more work on CBSM methods and
alternative approaches
• Allcott finds stricter efficiency standards to be
more effective
Limits of Behavioural Science Approach
Encouraging Purchases of More Energy Efficient Appliances
27 www.seai.ie
Encouraging
Businesses to Reduce
their Energy Use
28www.seai.ie
Encouraging Businesses to Save Energy
+% ~7%+%
~7%
• Control: No contact
• Treatment 1: Weekly emails with actionable
energy tips and inter-floor competition results
• Treatment 2: Weekly emails with actionable
energy tips and inter-floor competition results
and a weekly assigned energy champion for
each floor
• Results:
Treatment 1 floors: 5% reduction in energy
use
Treatment 2 floors: 14% reduction in energy
use
Flooring the Competition…
30 www.seai.ie
What Works for Changing
Transport Behaviour
31
Eco-driving
• Company employees encouraged to save fuel
– Control: No reward for using less fuel
– T1: Voucher for successfully using less fuel
– T2: Financial reward for using less fuel
• Results:
– No Savings until all driver received eco-driving training
– After receiving training those receiving vouchers reduced their use
by 5%
– Effect dissipated after 6 months
• Similar results found for airline pilots
• A second study found that setting managerial targets and providing
training to employees can reduce fuel use by 7%.
32 www.seai.ie
Smarter Travel Towns
• 3 towns in the UK took part in a community based modal shift program
• The program included:
– Personal Travel Planning
– Travel awareness campaigns
– Promotion of walking and cycling
– Public transport marketing
• Results:
– Car journeys decreased 9%
– Bus journeys increased 10-22%
– Cycling journeys increased 26-30%
– Walking increased 10-13%
• Smaller but similar results seen in Ireland
33 www.seai.ie
The Effectiveness of School
Based Programs in Changing
Energy Behaviour
34www.seai.ie
• Classroom based education on energy, energy saving
tips, and the environment
Children learn in school  Save energy at
home/Encourage parents to save energy
• Very few controlled studies
• Many programs designed with aim of “changing attitudes”
rather than behaviour
• Understudied and underdeveloped
Two Main Strands of Research in this Area
• Saving energy in university accommodation
Often used to test impact of behaviour change
interventions in absence of direct financial incentives to
save energy
• Number of controlled studies
Sample sizes often small
Follow-up periods often short
• Savings of up to 22%
Based on small samples…
35 www.seai.ie
Example of Best in Class Evaluation
• Part of a wider Competition styled intervention
called the “10% energy challenge” in Singapore
– Road shows, media events, and sent
households information kits on energy-
saving tips to raise public awareness
• Intervention included:
– energy education and energy saving tips to
schoolchildren.
– Students were encouraged to share these
tips at home with their parents and were
motivated to try to save 10% of their current
energy use with the chance to win prizes
• Energy savings were assessed from students
who brought in energy bills as well as accessing
energy meter data for 6,631 dwellings
• Treatment effect of 1.6% additional energy
savings
36 www.seai.ie
37
What’s missing?
Recommendations for Future Research
Some Comments on Energy Behaviour Research
38 www.seai.ie
Too much emphasis More research needed More research needed
More research needed More research needed Utilise Meter Data and
Counterfactual Impact Evaluation
Evaluating Behavioural Energy Saving Programs
39 www.seai.ie
Evaluating Energy Saving Programs – Best Practice
40 www.seai.ie
Evaluating Energy Saving Programs – Other Options
41 www.seai.ie
Thank you!
Behavioural Research
Experimental Design
Psychology/Carbon Mgmt.
Email: Andrew.OCallaghan@seai.ie
Karl Purcell Marek Bohacek Andrew O'Callaghan
Behavioural Problem Diagnosis
Experiment Implementation
Behavioural Science
Email: Karl.Purcell@seai.ie
Data Modelling
Language Programming
Psychology/Neuroscience
Email: Mark.Bohacek@seai.ie
Phil Hemmingway
Research and Development
Program Manager
Research Evaluation
Email: Phil.Hemmingway@seai.ie

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Changing Energy Behaviour – What Works?

  • 1. Changing Energy Behaviour – What Works? A review of international precedent Task 24 – DSMU Webinar by Karl Purcell, SEAI. 1
  • 2. Outline 1. Introduction to SEAI’s Behavioural Economics Unit 2. Search Strategy and Focus 3. Encouraging Households to Save Energy – What Works 4. Encouraging Businesses to Save Energy – What Works 5. Changing Transport Behaviour – What Works 6. School-Based Programs – What Do We Know? 7. What’s Missing from the Literature? 8. Recommendations for Future Research 2
  • 4. SEAI Behavioural Economics Unit Behavioural Research Experimental Design Psychology/Carbon Mgmt. Karl Purcell Marek Bohacek Andrew O'Callaghan Behavioural Problem Diagnosis Experiment Implementation Behavioural Science Data Modelling Language Programming Psychology/Neuroscience Phil Hemmingway Research and Development Program Manager Research Evaluation
  • 6. What is Behavioural Economics? Behavioural Economics Economics PsychologySociology “Context Matters” “Incentives Matter” “Culture and Society Matters” • TOU Pricing • Payback Period • Action of Neighbours • Perception of Consequences • Feedback • Hassle Factors • Availability Bias
  • 9. We read a lot of papers and reports… 9 Database Search • 2,423 papers identified Abstract Review • 695 relevant papers Detailed Review • 176 papers included
  • 10. Really…we read a lot of papers and reports… 10 www.seai.ie Metered Savings/Observed Behaviour Included a control group over lengthy time period
  • 11. We Summarised Each Paper in a Standard Template 11 www.seai.ie
  • 12. We then Agreed Common Themes and Wrote a Policy Note… 12 www.seai.ie
  • 13. So, what did we find? Encouraging Households to Save Energy 13www.seai.ie
  • 14. Encouraging Households to Save Energy ~10% ~4% ~3%~4% ~3% ~+5pp*
  • 16. Make it Easy – Defaulting people into savings programs 16 www.seai.ie Opt-in Opt-out 20% 5.9% 2% 98%
  • 17. Make It Easy - Automating Energy Savings • Estimated Savings of 4.5%-5% of annual household gas use – compared to households with programmable timers, room thermostats and TRVs • Auto-learning algorithm can save another 2.8%! • Make it Easy!
  • 18. Make it Attractive - Framing 18 www.seai.ie
  • 19. Make it Social 19 www.seai.ie It would take a price increase of 70% to generate the same savings!
  • 20. Make it Social – Set Goals and Public Commitments • Encourage people to set energy saving goals • More effective if the goal is publicly visible – Online list of participants • More effective if users set realistic goals of about 10-15% • Goal setting can produce savings of 10% 20 www.seai.ie
  • 21. Make it Timely 21 www.seai.ie
  • 22. Make It Timely– Instant Feedback Average Savings of 3% Average Savings of 5% - 7%
  • 23. 23 Encouraging the Installation of Energy Efficient Measures & The Purchase of Energy Efficient Appliances
  • 24. • Quick Home Energy Check-ups • 1 Hour Free Check-up • Offered CFL’s, Aerators, Efficient – flow, shower heads, Water Tank Heat Wraps • Save between 2.7% and 5.5% of energy • Training of auditors also effective • Phone-based Audits • “Gaps add up, it’s like having a football sizes hole in your wall” • Homes who received call from trained auditors twice as likely to claim a rebate (grant) • No difference in actual energy savings! How can we prompt more homeowners to take action? 24
  • 25. • CBSM approach in North Carolina • Treatment included the following: Instant rebates on lightbulbs In-store signage for a week before one-day event Flyers placed in customers bags for a week before event Promotion at home energy show Direct mail postcards to homes within 10-mile radius Email notifications to utility customers Sticky notes placed on locally delivered newspapers • Results: Sales increased by 896%! However, no statistically significant difference in energy use between control and treatment homes Are community based social marketing approaches more effective? 25 www.seai.ie
  • 26. • Similar to Warmer Homes • 23,500 robo-calls • 15,000 door hangers • 7,000 home-visits • Sign-up assistance events • Control group: 1% completed weatherization rate • Treatment group: 6% completed weatherization rate Encouraging Applications to a Free Weatherization Program 26 www.seai.ie
  • 27. • Adding lifetime costs or 5 year running cost very popular • Medium effect sizes in lab experiments • Very small effect sizes in field trials Hard to implement/measure More “noise” • Bonus/Malus and Subsidy systems can have unintended consequences Encourage purchase of bigger appliances • Need more work on CBSM methods and alternative approaches • Allcott finds stricter efficiency standards to be more effective Limits of Behavioural Science Approach Encouraging Purchases of More Energy Efficient Appliances 27 www.seai.ie
  • 28. Encouraging Businesses to Reduce their Energy Use 28www.seai.ie
  • 29. Encouraging Businesses to Save Energy +% ~7%+% ~7%
  • 30. • Control: No contact • Treatment 1: Weekly emails with actionable energy tips and inter-floor competition results • Treatment 2: Weekly emails with actionable energy tips and inter-floor competition results and a weekly assigned energy champion for each floor • Results: Treatment 1 floors: 5% reduction in energy use Treatment 2 floors: 14% reduction in energy use Flooring the Competition… 30 www.seai.ie
  • 31. What Works for Changing Transport Behaviour 31
  • 32. Eco-driving • Company employees encouraged to save fuel – Control: No reward for using less fuel – T1: Voucher for successfully using less fuel – T2: Financial reward for using less fuel • Results: – No Savings until all driver received eco-driving training – After receiving training those receiving vouchers reduced their use by 5% – Effect dissipated after 6 months • Similar results found for airline pilots • A second study found that setting managerial targets and providing training to employees can reduce fuel use by 7%. 32 www.seai.ie
  • 33. Smarter Travel Towns • 3 towns in the UK took part in a community based modal shift program • The program included: – Personal Travel Planning – Travel awareness campaigns – Promotion of walking and cycling – Public transport marketing • Results: – Car journeys decreased 9% – Bus journeys increased 10-22% – Cycling journeys increased 26-30% – Walking increased 10-13% • Smaller but similar results seen in Ireland 33 www.seai.ie
  • 34. The Effectiveness of School Based Programs in Changing Energy Behaviour 34www.seai.ie
  • 35. • Classroom based education on energy, energy saving tips, and the environment Children learn in school  Save energy at home/Encourage parents to save energy • Very few controlled studies • Many programs designed with aim of “changing attitudes” rather than behaviour • Understudied and underdeveloped Two Main Strands of Research in this Area • Saving energy in university accommodation Often used to test impact of behaviour change interventions in absence of direct financial incentives to save energy • Number of controlled studies Sample sizes often small Follow-up periods often short • Savings of up to 22% Based on small samples… 35 www.seai.ie
  • 36. Example of Best in Class Evaluation • Part of a wider Competition styled intervention called the “10% energy challenge” in Singapore – Road shows, media events, and sent households information kits on energy- saving tips to raise public awareness • Intervention included: – energy education and energy saving tips to schoolchildren. – Students were encouraged to share these tips at home with their parents and were motivated to try to save 10% of their current energy use with the chance to win prizes • Energy savings were assessed from students who brought in energy bills as well as accessing energy meter data for 6,631 dwellings • Treatment effect of 1.6% additional energy savings 36 www.seai.ie
  • 38. Some Comments on Energy Behaviour Research 38 www.seai.ie Too much emphasis More research needed More research needed More research needed More research needed Utilise Meter Data and Counterfactual Impact Evaluation
  • 39. Evaluating Behavioural Energy Saving Programs 39 www.seai.ie
  • 40. Evaluating Energy Saving Programs – Best Practice 40 www.seai.ie
  • 41. Evaluating Energy Saving Programs – Other Options 41 www.seai.ie
  • 42. Thank you! Behavioural Research Experimental Design Psychology/Carbon Mgmt. Email: Andrew.OCallaghan@seai.ie Karl Purcell Marek Bohacek Andrew O'Callaghan Behavioural Problem Diagnosis Experiment Implementation Behavioural Science Email: Karl.Purcell@seai.ie Data Modelling Language Programming Psychology/Neuroscience Email: Mark.Bohacek@seai.ie Phil Hemmingway Research and Development Program Manager Research Evaluation Email: Phil.Hemmingway@seai.ie