Pay now, save later: Using insights from behavioural economics to commit consumers to environmental sustainability

Mahmoodi, Jasmin; Patel, Martin Kumar; Brosch, Tobias

doi:10.1016/j.jenvp.2021.101625

Cited by 5 publications

(2 citation statements)

References 88 publications

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“…Economically, people triggered by present bias will mainly prefer the options that generate immediate benefits, even delay gratification could provide better utility outcomes. As an example of the street experiment, participants were asked to select a financial reward between 'received $100 now' or '$150 six months later', and a great number of citizens chose immediate financial reward but a smaller amount [16]. There are plenty of daily examples of the cognitive bias, which display the tendency that the more distant the delayed reward, the more people discount its value.…”

Section: Present Biasmentioning

confidence: 99%

Exerting Behavioral Economics to Household Energy Use

Liu¹

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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It is a critical, lasting for years between scholars to research the ways to effectively enforce energy conservation plans. Even though individuals have received environmental protection education to some extent, they were still unable to effectively implement the knowledge or awareness into pro-environmental behaviors. Inadequate access to affordable or sustainable green energy services deprived households of opportunities for a better life. The discrepancy between the assumption of our disciplines appeared very large indeed so that usual economic models or utility-maximizing functions cannot explain the irrational behaviors. Therefore, modern economists have turned their attention to the concept of cognitive bias. In parallel, private families were the main target of behavioral intervention. Households can save energy in two ways: First, they can make voluntary changes to their energy consumption, such as reducing lighting use. Second, they can change their buying behavior and invest in energy efficiency, such as buying energy-efficient air conditioners. Both purchasing decisions and consumption behaviors can be achieved through policy interventions with the help of behavioral economists and psychologists. In this paper, the author discussed several major psychological factors which deviate human behaviors the best interests, and brought corresponded behavioral interventions to solve bias. While the field of behavioral economics has provided some evidence for interventions, the author will focus on those that are particularly relevant to the context of energy saving. All the measures were based on rigorous reasoning and experiments. Understanding these psychological phenomena can help institutions to design cost-effective and satisfactory solutions, encouraging consumers to correctly and effectively use green energy.

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Section: Present Biasmentioning

confidence: 99%

Exerting Behavioral Economics to Household Energy Use

Liu¹

2022

Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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“…There are also studies which underline the important role of the customers and their energy related behaviour for the energy system. One important task for the behavioural science is to understand the main factors which influence the motivation and the commitment of consumers for long term agreements [28].…”

Section: Consumer Behaviour In the Electricity Fieldmentioning

confidence: 99%

Key Factors Which Contribute to the Participation of Consumers in Demand Response Programs and Enable the Proliferation of Renewable Energy Sources

et al. 2021

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Consumer behaviour in the energy field is playing a more important role in the new approach dominated by the proliferation of renewable energy sources. In this new context, the grid has to balance the intermittent and uncertain renewable energy generated, and find solutions, also, on the consumer side for increasing the stability and reliability of the energy system. The main de-mand response solutions are price and incentive based, but there is a need to identify the main factors which can influence their efficiency due to the fact that there is a lack of knowledge about the preferences of consumers. The main goal of this article is to identify the main demand response solutions and the related key factors which influence the participation of consumers in demand response programs and may contribute to the spread of renewable energy sources. For this research, semi-structured interviews were organised with experts in energy from Romania, Hungary and Serbia, as well as workshops with experts in energy, and an online survey with customers for electricity. This article reduces the gap between the results of technical studies, related in demand response programs, and their practical implementations, where the consumer behaviour and its social dimensions are neglected even though, in reality, they are playing the main role. The results suggest that the consumer’s participation in demand response programs is highly influenced by different aspects related to the promotion of the renewable energy and the reduction of CO2 emissions and the global warming impact.

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Challenges and future directions in sustainable textile materials

Maduna

Patnaik

2023

Sustainable Fibres for Fashion and Textile Manufacturing

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Pay now, save later: Using insights from behavioural economics to commit consumers to environmental sustainability

Cited by 5 publications

References 88 publications

Exerting Behavioral Economics to Household Energy Use

Exerting Behavioral Economics to Household Energy Use

Key Factors Which Contribute to the Participation of Consumers in Demand Response Programs and Enable the Proliferation of Renewable Energy Sources

Challenges and future directions in sustainable textile materials

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