1. Behaviouralchange and the
importance of people in resource
efficiency
Dr Robert Metcalfe
University of Oxford
robert.metcalfe@merton.ox.ac.uk
www.rmetcalfe.com

2. • What are your challenges?
– Policy, Politics, Profit, People
• Standard psychological approach:
– Our behaviour is determined by attitudes, beliefs
and goals
• Standard economic approach:
– We are rational and use cost-benefit analysis
• To change behaviour therefore use
information and incentives

3. Think about MINDSPACE
Messengerwho communicates information
Incentives shaped by mental shortcuts
Norms influenced by what others do
Defaultsgo with the flow of pre-set options
Salienceattention drawn to relevant novelty
Priminginfluenced by unconscious cues
Affectemotional associations shape actions
Commitmentconsistent promises and reciprocity
Egoseek to feel better about ourselves
Paul Dolan, Michael Hallsworth, David Halpern, Dominic King, Robert Metcalfe &IvoVlaev), (2012).
Influencing behaviour: the MINDSPACE way. Journal of Economic Psychology, 33: 264-277.

4. Impact of norms on energy consumption
We are strongly influenced by what others do around us
So do norms work in changing energy behaviour?

6. Control
statement

7. Treatment 1
statement –
over average

8. Treatment 1
statement –
under average

9. Treatment 2
statement -
front

10. Treatment 2
statement -
back

11. Results over 15 months
Norms Norms
and information
First day - 12% - 15%
First month - 4.5% - 11%
First seven months - 4.5% - 8.5%
First 15 months

12. Results over 15 months
Norms Norms
and information
First day - 12% - 15%
First month - 4.5% - 11%
First seven months - 4.5% - 8.5%
First 15 months - 6% - 5.5%

13. Pricing the effects
• 8-9% ≅ prices by around 30% to 70%
• Saved 1200kW/h per HH over one year
– ~ £100 per HH
• Cost of the intervention per household < £3
– Large benefit-cost ratio (even without social benefits)

14. Policy implications
• Policy implications for energy benchmarking (e.g. U.K.)
• Need accurate data on:
– Individual consumption (dumb and smart meters help)
– Neighbours’ consumption
– Neighbours’ property size
• Do not fully understand
– Spillovers
– What types of carrots work

15. Thank you!