This policy brief includes two complementary research projects aimed at exploring how nudges and informational campaigns can impact consumers’ behavior with respect to environmentally relevant consumption activities.
The first contribution explores innovative methods to promote sustainable energy consumption behaviors. Due to the urgency of reducing CO2 emissions, the project considers advanced smart-meter technology and psycho-behavioral segmentation to deliver personalized, non-invasive interventions.
The first phase of the study involves analyzing high-frequency smart meter data from partners in the energy sector, supplemented by consumer attitudes and motivations. The data analysis employs selforganizing maps (SOMs) and wavelet transformations to uncover consumption patterns and cluster households based on energy behaviors. Initial findings reveal distinct seasonal trends, with winter peak usage and summer efficiencies offering insights into consumer habits. Data from international energy providers will further refine these analyses.
The second phase focuses on implementing randomized controlled trials to test the efficacy of targeted behavioral interventions compared to standard approaches. By tailoring nudges to specific consumer clusters, the research seeks to foster pro-environmental behavior while maintaining individual freedom of choice.
The second work investigates the direct and spillover effects of behavioral nudges aimed at promoting sustainable resource consumption, focusing on a large-scale randomized controlled trial (RCT) conducted in collaboration with an Italian multi-utility company. The study evaluates the impact of a social information program for water conservation that included comparisons with neighbors, injunctive feedback, and conservation tips.
- Key findings include a 1.4% reduction in water usage and a spillover reduction on a second energy resource, with a 0.5% reduction in electricity consumption over two years.
We detect no significant effect on gas consumption. Notably, the intervention was more effective when targeted as a standalone nudge, emphasizing the importance of strategic program design to avoid cognitive overload or diminishing returns from overlapping campaigns. Moreover, the program improved customer retention.
These results highlight the necessity of designing well-timed, targeted, and coordinated behavioral interventions to maximize their environmental and economic benefits. For utilities and policymakers, integrating these insights can ensure that nudges are effective as well as valued by consumers, delivering a dual dividend of sustainable resource use and customer loyalty.