Greening Household Behaviour: Lessons Learned Concerning Energy - - PowerPoint PPT Presentation

Greening Household Behaviour: Lessons Learned Concerning Energy Efficiency

Public Hearing on Energy Efficiency

European Economic and Social Committee

Wednesday 18 May 2011 Presentation by Yse Serret-Itzicsohn

Environment and Economy Integration Division OECD Environment Directorate

Objective

• Demand side is receiving increasing attention from

governments

• This work provides new insights by covering a broad

range

• f

countries, sectors, impacts and environmental policies

• Takes account of interactions between policy

measures and households’ characteristics when assessing what affects behaviour

• With the objective is to generate empirically-founded

policy guidance on what really works

OECD Household Survey: First Round

• Scope: Energy efficiency and renewable energy + 4 other

thematic areas (transport, organic, waste, water)

• Coverage: 10 countries (Australia, Canada, Czech Republic,

France, Italy, Korea, Mexico, the Netherlands, Norway, Sweden)

• Dependent variables: Environment-related purchases,

behaviour, Willingness to Pay

• Method of data collection: Internet panel-based on-line

survey implemented in 2008 – stratified by age, gender, region and socio economic status for representativity

• Total sample size: 10 000 respondents (approx. 1000 per

country)

• Results recently published: Greening Household

Behaviour: The Role of Public Policy (OECD, 2011)

Examples of policy issues examined

• What are the main factors influencing energy-

saving behaviour at home?

• What are the main factors influencing

investments in energy-efficient equipments

• How effective is energy efficiency labelling?
• How do general attitudes towards the

environment influence demand for energy efficiency?

• Who invests in energy-saving equipment?

Motivation to reduce energy consumption at home

Proportion of households taking into account energy costs when purchasing/renting their current primary residence

Percentage of households who strongly agree with the statement that each individual/household can contribute to a better environment

Key Insights (1)

• The importance of providing the right price

incentive to spur behavioural change is confirmed

• Energy metering is found to introduce more

frequent energy saving activities such as turning

• ff lights
• Being metered also matters for investing in

energy saving equipment (energy efficient appliances, thermal insulation)

Energy saving behaviour: influence of being metered

The Importance of Pricing: Investment in Energy Conservation

(% ownership against unit pricing)

Key Insights (2)

• The results indicate that economic incentives can be

usefully complemented by providing information to consumers and education to induce changes on the demand side

• Labels prove to be particularly effective if they relate

to both the public and private benefits of the good or service (energy-efficiency labels)

• Could exploit potential for private benefits to a larger

extent (e.g. reduced bills due to energy-savings)

• Need to ensure clarity in information market given to

consumers and avoid competing and confusing labelling

The Role of Information: Recognition and Use of Energy-Efficiency Labels

Trust in Source of Information on Environmental Issues

(Mean Rank: 1 = Most Trustworthy)

Key Insights (3)

• Role of ‘norms’ not usually addressed in previous

empirical studies

• Results indicate that environmental (and social)

‘norms’ and ‘attitudes’ are important

• Being concerned for the environment has a positive

effect on energy saving behaviour and also increases the likelihood of investing in energy- efficient equipment (e.g. efficient hot water boiler)

• Highlights the significant role information tools can

play to change behaviour (e.g. public information campaigns)

Key Insights (4)

• Need to combine supply-side and demand-side

policies in order to maximise behavioural responses

• This often involves combination of a price-based

policy and supply of public services (e.g. smart metering, characteristics of electricity supply)

• Weak demand for “green electricity” (few

households WTP more than 5% above their bill)

• However, need to take into account the costs

associated with the introduction of supply-side (‘pull’) policies

Willingness-to-pay for renewable energy

Key Insights (5)

• “Environmental” policy may not be sufficient if there

are important non-environmental market barriers (information, split incentives)

• For instance in the case of significant household-

level investments (e.g. consumer durables)

• Home owners are more likely to invest in thermal

insulation, energy-efficient appliances and low- energy lighting

• May need to introduce complementary policies to

address the ‘other’ constraint on behavioural responses

Accounting for Market Conditions: Split Incentives in Energy Conservation

(Home Ownership Status and Selected Investments)

Next Steps

• New round of the OECD Survey implemented early 2011

to further analyse the drivers of environmental behaviour and household response to policies in the five areas: Energy, Transport, Organic, Waste, Water.

• Eleven countries are taking part: Australia, Canada, Chile,

France, Israel, Japan, Korea, the Netherlands, Spain, Sweden and Switzerland

• Greater attention paid to demand-side barriers to policy

implementation (i.e. policy ‘preferences’, norms)

• Fuller incorporation of insights from behavioural economics
• Examines ways to the development of a low-carbon

economy and to promote green growth

Thank you

Publication dedicated webpage

• More information on OECD work available at: