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IW-Policy Paper No. 2 20. February 2023 Dominik Enste / Julia Hensen / Jennifer Potthoff 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
IW-Policy Paper No. 2 20. February 2023 Dominik Enste / Julia Hensen / Jennifer Potthoff

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

Dominik Enste / Julia Hensen / Jennifer Potthoff 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
IW-Policy Paper No. 2 20. February 2023 Dominik Enste / Julia Hensen / Jennifer Potthoff

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

Dominik Enste / Julia Hensen / Jennifer Potthoff German Economic Institute (IW) German Economic Institute (IW)

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The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison
IW-Trends No. 3 29. September 2026 Dominik Enste / Jennifer Potthoff / Augustin Renz

The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison

Honesty reduces transaction costs and is therefore a prerequisite for effective economic cooperation.

Dominik Enste / Jennifer Potthoff / Augustin Renz IW

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IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel

Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.

Jennifer Potthoff / Rebecca Gabel IW

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