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Dominik Enste / Julia Hensen / Jennifer Potthoff IW-Policy Paper No. 2 20. February 2023 Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

In view of the impending gas shortage, private households are called upon to reduce their gas and energy consumption. The moral appeals of those in power harbor the danger that people will react with reactance instead of the desired change in behavior.

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Behavioral economic measures for freedom-preserving energy conservation
Dominik Enste / Julia Hensen / Jennifer Potthoff IW-Policy Paper No. 2 20. February 2023

Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

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German Economic Institute (IW) German Economic Institute (IW)

In view of the impending gas shortage, private households are called upon to reduce their gas and energy consumption. The moral appeals of those in power harbor the danger that people will react with reactance instead of the desired change in behavior.

Instead of saving, they try to regain their restricted freedom. Energy-saving behavior could be better promoted with less freedom-restricting, behavior-economic measures. One approach to solving this problem is nudging. Nudges guide human behavior and individual choices in a desired direction through minimally invasive, non-financial interventions without restricting freedom of choice. The analyzed nudges of Feedback, Commitment and Goal Setting, Gamification, Social Comparison and Default Changes show potential savings in energy and gas consumption of 4 to 20 percent - depending on the design of the measures. Gamification and social comparison processes are particularly effective in combination with feedback. The playful component ensures that saving energy is no longer (just) a moral obligation but can also be fun. In addition, a clever combination of measures can save a 4-person household an average of up to 1,000 euros a year at the current price level for electricity and gas.

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Behavioral economic measures for freedom-preserving energy conservation
Dominik Enste / Julia Hensen / Jennifer Potthoff IW-Policy Paper No. 2 20. February 2023

Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

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German Economic Institute (IW) German Economic Institute (IW)

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Better regulation and green nudges for more sustainability
Dominik H. Enste / Jennifer Potthoff IW-Analyse No. 146 30. December 2021

Behavioral Economics and Climate Protection: Better regulation and green nudges for more sustainability

Protecting the climate is one of the greatest challenges our society is currently facing. In view of the heated political and social discussions surrounding this topic, the question naturally arises as to whether behavioral-economic insights can be used to ...

IW

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Dominik Enste / Hans-Peter Klös IW-Policy Paper No. 27 1. December 2021

Growth, Equity and Sustainability

In the last two decades, a debate has unfolded around the relationship between growth and well-being that has produced numerous new concepts, indicators and sets of targets. This increasingly includes an emphasis on sustainability concepts.

IW

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