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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

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

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

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Green Nudging – a key against littering?
Jennifer Potthoff IW-Policy Paper No. 10 22. November 2023

Green Nudging – a key against littering?

The demand for cleanliness in cities is increasing: "Littering" - the illegal littering of public spaces - does not only cause costs for the environment and society, but also has significant financial consequences through increased cleaning costs.

IW

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Dominik Enste / Jennifer Potthoff IW-Report No. 26 1. May 2023

Behavioral Economics in Companies: Nudging green behavior

Climate change, the finite nature of natural resources, a growing world population and the quest for prosperity challenge society and policy to act responsibly and sustainably. The debate on climate change and the upcoming energy transition was recently ...

IW

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