Behavioural insights draws on research into behavioural economics and psychology to influence choices in decision-making. By focusing on the social, cognitive and emotional behaviour of individuals and institutions it suggests that subtle changes to the way in which decisions are framed and conveyed can have big impacts on behaviour. The NSW Government is now among the world leaders in the application of behavioural insights to public policy with a dedicated central team and work program within the Department of Premier and Cabinet. The Behavioural Insights Unit will discuss how behavioural insights is being applied to innovative policy making and trials underway in NSW and overseas and shows how it can be applied in the water and sustainability spheres.

1. Applying Behavioural Insights to public
policy
Dr Alex Gyani and Shabnam Gill

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What will we be covering?
• What are Behavioural
Insights?
• How have they been used in
the UK and NSW?
• How do we know that they
work?
• How can I apply them to my
own work?

3. 3
What are Behavioural Insights?
Behavioural
Insights
Psychology
Economics
Public
Policy
Ethnography
Understanding how people behave in practice, so that
we can design better policies & services

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A different approach to public policy
Understand
Build
Test

5. Behavioural
Insights in NSW

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Four major areas of current work
Health
Social Housing
Domestic Violence
Return to Work

7. The EAST
Framework

8. © Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY

9. Defaults
Simplification
Remove friction

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BIT ran a trial on the ‘Tax Return Initiative’
with HM Revenue & Customs
Direct to form
Webpage

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Removing small frictions seems to
make a disproportionate difference
19.2%
23.4%
Webpage Direct to Form

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Significant increase in use of
Private Health Insurance
This led to $1.6m in additional
revenue and cost offsets at
Westmead Hospital
0%
5%
10%
15%
20%
25%
August September October November December January
% PHI 2012 % PHI 2013

13. © Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY

14. Salience
Personalisation
Rewards

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Letters to persistent non-payers of car tax in the
UK
UNTAXED VEHICLE WARNING
Our latest information shows
you have not taxed your vehicle.
PAY YOUR TAX OR LOSE YOUR [MAKE OF CAR]
You have been caught driving your [make of
car] untaxed.
Image captured on traffic
camera of untaxed car stapled
on the front of the letter
2 31

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% Relicensing rates of persistent offenders to
DVLA letters
40.4% 42.4%
48.8%
Original New New + image

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NSW Office of State Revenue

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NSW Penalty Notice Trial
53.5%
60.4%
Control Trial

19. © Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY

20. Norms
Networks
Commitments

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Nine out of ten people pay their tax on time.

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UK BIT ran a trial using social norms to increase
tax payment rates within 23 days (1 month)
33.6% 35.1% 35.9% 37.2% 39.0%
Control (8,558) UK Norm (8,300) Local Norm
(8,403)
Debt Norm
(8,779)
Local + Debt
Norm (8,643)

23. © Behavioural Insights ltd
SOCIAL
TIMELYATTRACTIVE
EASY

24. Key moments
Prompts
Habits

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Use critical moments when you have
people’s attention

26. © Behavioural Insights ltd
1. Control 2. Norm
3. Norm & Picture 4. Norm & Logo

27. © Behavioural Insights ltd
5. Three Die 6. Nine Lives
7. Reciprocity 8. Action

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Proportion joining the organ donor
register after a simple online prompt
2.3%
2.8% 2.9% 2.9% 2.9% 3.1% 3.2%
2.2%
Control Take
Action
1000s Heart Lives 3 Die Would you People

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How did UK cyclists win? ...radical
incrementalism
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30. RCTs &
Systematic
Reviews of RCTs
Comparison study
without randomisation
Before and after study
Editorials, Expert opinion
Anecdotal evidence
The thought leaders all think that
this is a great idea
But, experts agreed that tonsils
should be removed
We randomly allocated people to
different conditions and found that the
second variant led to a 75% decrease in
water consumption
But, it opened the same week the
new Harry Potter book was
released
We spent $30M on a new library and found
that suddenly everyone was reading
We offered lots of free fruit in schools and
found that those who ate it ended up much
fitter and healthier
Well, maybe the healthy food
you gave them at school was
seen as a treat compared to the
quinoa they get at home

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Using Norms to Reduce Energy
Consumption
Allcott 2011

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How to apply BI to basic
communications
Can you find out their
name?
Can you make this
more action oriented?
What is a positive
covenant?
You have their address!
Or at least their gender?
Why use the 3rd
person?

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How to apply BI to basic
communications What happens if I don’t?
Can you give an example of
what this is?
What was the last thing you
progressed in your personal life?

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What do you actually need to say?
1. What they need to do.
2. How to do it.
3. What happens if they don’t.
Now look to the
EAST framework

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Conclusions
Behavioural insights work!
With a better understanding of
people we can make better policy
We need to test our ideas to make
sure we are having the effect we
would like
We are only just starting to plumb
the depths of what BI can do for
citizens

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NSW BI Unit Websites
Behavioural Exchange 2014
http://bx2014.org/
NSW BI Community of Practice
http://bi.dpc.nsw.gov.au/