Who we a re Pr ofe ssor Uwe Dulle c k Pr ofe ssor Re be kah - PowerPoint PPT Presentation

F unde d by Hug, Nudge , Shove or Smac k? T e sting appro ac he s to e nab ling c o nsume r e ne rg y use b e havio ur c hang e : Me tho d Pro fe sso r Uwe Dulle c k & Pro fe sso r Re b e ka h Russe ll-Be nne tt

Who we a re Pr ofe ssor Uwe Dulle c k Pr ofe ssor Re be kah Russe ll- Be nne tt So c ia l Ma rke ting a nd Co nsume r Psyc ho lo g y Be ha vio ura l E c o no mic s Pro fe sso r o f Ma rke ting Pro fe sso r o f E c o no mic s, QUT QUT Busine ss Sc ho o l Qld Be ha vio ura l E c o no mic s Gro up (QuBE ) Adjunc t Pro fe sso r, Ho n. Pro fe sso r o f Be ha vio ura l E c o no mic s, Na tio na l Unive rsity o f I re la nd, Ga lwa y Cra wfo rd Sc ho o l o f Pub lic Po lic y ANU Ste e ring Co mmitte e Me mb e r, GE E R

Age nda and Pur pose of the Se ssion  12.30-12.50pm: I ntro duc tio ns  12.50-1.00pm: Brie f Ba c kg ro und to the Pro je c t  1.00-2.30pm: I nte ra c tive Disc ussio n  We lc o me to tho se who also atte nde d the e arlie r se ssio n!

Introduc tions Who is in the ro o m? Wha t is yo ur inte re st in to da y’ s se ssio n?

Ba c kg round to the Proje c t

Re se a rc h Que stio ns Re se ar c h Que stions What we know What we don’t know • R Q1 : Ho w do c o nsume rs re spo nd to e a c h o f the fo ur po lic y le ve rs? •T he fo ur po lic y le ve rs •Ho w (diffe re nt type s o f) c a n b e suc c e ssful a t c o nsume rs will re spo nd to Q2 : Ho w do e s the initia l e ffe c t de c a y a ffe c ting b e ha vio ur e a c h o f the fo ur le ve rs R o ve r time fo r e a c h le ve r? c ha ng e whe n it c o me s to T o U pric ing Q3 : Ho w do individua l diffe re nc e s R influe nc e c o nsume r re spo nse s to the le ve rs?

Re se a rc h Me tho d E xpe r ime ntal L ab De sign •Ab stra c t pub lic g o o d g a me •Que stio nna ire inc luding individua l diffe re nc e s like pro so c ia l pro pe nsity Sample •160 pe o ple , g e ne ra l po pula tio n •10 g ro ups o f 16 pe o ple (4 g ro ups pe r se ssio n) Da ta Cle a ning a nd Ana lysis • T -T e sts a nd ANOVAs – Whic h le ve r is mo st influe ntia l, Ho w d o e s this d e c a y o ve r time • ANCOVA a nd F a c to ria l ANOVA – Whic h ind ivid ua l d iffe re nc e s influe nc e the e ffe c tive ne ss o f the le ve rs fo r e nc o ura g ing pro so c ia l b e ha vio ur?

E le c tric ity pric ing a nd c o nsume rs  E le c tric ity pric e s a re Consume r E le c tr ic ity Pr ic e Inde x, Infla tion Adjuste d inc re a sing  T he re is inc re a se d pre ssure o n c o nsume rs  We c a n e ithe r influe nc e the de ma nd o r the supply side So urc e : Da ta fro m ABS, Gra ph fro m ACCC: Re tail E le c tric ity Pric ing I nq uiry – Pre liminary Re po rt , 22 Se pte mb e r 2017

Be ha vio ura l E c o no mic s: I nsig hts a nd L imita tio ns ffic ie nc y  De faults and E E ffic ie nt (CF L B) b ulb s a re ke pt 80% o f the time whe n the y a re insta lle d a s the de fa ult, whe re a s tra ditio na l I L B (inc a nde sc e nt) b ulb s a re ke pt 56% o f the time (Dinne r e t a l., 2011) – US study. “De fault is an implic it e ndor se me nt” (Sunste in, 2016; Ma dria n & She a , 2001; Mc K e nzie e t a l, 2006).

Be ha vio ura l E c o no mic s: I nsig hts a nd L imita tio ns  Smar t Me te r s E U ta rg e t o f 80% o f ho me s with sma rt me te rs (dire c tive 2009/ 72/ E C).  Oe la nde r a nd T ho rg e rso n (2013) sho w o pt o ut fra me le a ds to a 50% hig he r upta ke in sma rt me te rs tha n info rma tio n a lo ne .  Sunste in (2016), Jo hnso n a nd Go ldste in, se e ine rtia o r pro c ra stina tio n a s a ma jo r re a so n.

Be ha vio ura l E c o no mic s: I nsig hts a nd L imita tio ns – Hug s & Sma c ks  L oss a ve rsion Ge rma n da ta (I nfa s E ne rg ie mo nito r, 2012) sho ws ta riff switc he s a re ra re – e ve n if the a lte rna tive is “g re e n a nd c he a pe r”.  Ho w a pric e is pre se nte d ma tte rs – T ha le r e t a l. (1994), Mc Gra w e t a l. (2010).  Bro wn e t a l. (2013) – pe o ple g o with the de fa ult unle ss it ma ke s the m to o c o ld, pa y to o muc h.

T he E thic s o f E ne rg y Nudg e s  Sunste in (2016):  We lfa re , ne t-b e ne fits: Gre e n De fa ults vs. “b e ne fits, a s judg e d b y the mse lve s”  Dig nity/ Auto no my: Ac tive Cho ic e .  Se lf g o ve rnme nt – trusting institutio ns: E va lua te d so lutio ns a s de fa ults.

E le c tric ity usa g e is a so c ia l dile mma ?  A ‘public good’ socia ial d dil ilemma is where an individual must decide whether to contribute to a common resource (Dawes, 1980).  Individual choices generally are made based on intuitive and implicit judgments concerning short-term a and nd long ng- term be bene nefits, and the many competitive options available (Rothschild, 2001).  Prosocia ial P Persona nali lities influence behaviour (McDougall, 1908). Prosocial P Prope pensit ity, refers to the individuals predisposition to engage with prosocial behaviour. The he C Cons nsumer m mus ust de decide ide; Will I redu duce my own c cons nsumptio ion, inc ncurring ing a pe personal c cost, t to contribu ibute t to a common resource ( (Dawes, 1 , 1980).

Wha t is a pub lic g o o d g a me ? T e rmino lo g y ndo wme nt - re fe rs to the sum o f 10 to ke ns e a c h pla ye r  E is g ive n to use during e a c h ro und ating - hig h c o ntrib utio ns to the pub lic g o o d  Co o pe r c o rre spo nd to a c ting pro -e nviro nme nta lly, a nd in turn re duc e d e le c tric ity c o nsumptio n ibutio n - dire c tly tra nsla te s a s e le c tric ity  Co ntr c o nsumptio n b e ha vio ur Ac hie ving high le ve ls of c ontribution by the group is c onside re d c o- ope ration. High le ve ls of c oope ration are the ultimate goal of the public good game .

Po ssib le 2 x 2 Choic e (re stric te d/ fre e ) a nd Outc ome (re wa rd/ punishme nt) (Ac tive De c ision) F r e e c hoic e Smac k Hug F re e c ho ic e o f E CU F re e c ho ic e o f E CU Disinc e ntive Punishme nt le ve ls le ve ls nc e ntive re wa rd Punishme nt o f lo ss o f $ Re wa rd o f a dditio na l $ e ndo wme nt e ndo wme nt Shove Nudge Re stric te d c ho ic e o f Re stric te d c ho ic e o f E CU le ve ls E CU le ve ls Punishme nt o f lo ss o f $ I Re wa rd o f a dditio na l $ e ndo wme nt e ndo wme nt Re str ic te d c hoic e (Passive De c ision ) Que stio n: Ho w do yo u think the se finding s mig ht he lp to o pe ra tio na lise the nudg e , hug , smac k and sho ve in the e ne rg y se c to r?

Ho w do we c re a te hug s, nudg e s, sho ve s, a nd sma c ks? Ba se line : Standar d T r e atme nt Pa yoff = (10 – x)+ [ ¼ *(x+y)]*1.6 Hug : Re wa rd fo r c o ntrib utio n Pa yoff = (10 – x)+0.1x+ [¼*(x+y)]*1.6 Nudg e : Auto -se le c te d Pa yoff = (10 – x)+ [¼ *(x+y)]*1.6 c o ntrib utio n a mo unt Shove : Cho ic e re stric tio n Pa yoff = (10 – x)+ [¼ *(x+y)]*1.6 Sma c k: Punishme nt fo r no n- Pa yoff = (10 – x) * 0.9 + [¼* (x+y)]*1.6 c o ntrib utio n Que stio n: Wha t a re the e xisting le ve rs tha t yo u a re a wa re o f tha t e nc o ura g e c o nsume rs to c ha ng e the ir e ne rg y b e ha vio urs? Ho w a re c o nsume rs re spo nding ?

De pe nde nt Va ria b le s  Co nsume r re spo nse s:  Willing ne ss to c o nse rve e ne rg y (kwh) Que stio n: wha t o the r va ria b le s wo uld yo u like to b e a b le to influe nc e ?

Da ta Co lle c tio n T wo sta g e s a re pro po se d, a llo wing us to te st the ro b ustne ss o f the re se a rc h in two e nviro nme nts, b uilding the e vide nc e b a se fo r kno wle dg e a nd me tho d a t o nc e (pro viding use ful insig hts into c o nsume r b e ha vio ur and the b e st pla tfo rm to use ).  Stage 1 : QuBE L a b a t QUT (in pe rso n)  Stage 2 : Online surve y using pa rtne r Rub in8  http:/ / www.rub in8.c o m.a u/ Que stio n: wha t do yo u think o f the o nline vs the o ffline a ppro a c h? Wha t pe rc e nta g e o f sa mple sho uld b e in e a c h?

Sa mpling a nd Re c ruitme nt  We c a n c o lle c t o nline o r o ffline  Se e king g e ne ra l po pula tio n a dults (diffe re nt fro m the stude nt sa mple s usua lly use d) Que stio n: wha t sa mpling c rite ria a re c ritic ally impo rta nt?

E xpe rime nta l Pro c e ss T he n c o mple te Gro ups o f 4 surve y – pla ye rs (16 Re a d Pla y 16 ro unds de mo g ra phic s pe o ple a t a instruc tio ns, o f the g a me a nd time ) T e st q ue stio ns mo de ra ting simulta ne o usly va ria b le s

Ho w do e s the g a me run? Co ntro l Ro und Intro d uc tio n Co ntrib ute Pa yme nt Surve y Che c k F e e d b a c k Sc re e n Sc re e n Pa g e Que stio ns Sc re e n

An e xa mple Que stio n: Are the instruc tio ns c le a r a nd intuitive fo r the e xpe rime nt?

I nstruc tio ns

Que stio n: T he fig ure o f 160% c o me s fro m the lite ra ture …is this re a listic ?