Nudging for Sustainability - Does it work?
“The road to hell is paved with good intentions”
Dr. Christina Gravert University of Gothenburg, Department of Economics
2. May 2017 3 ACTION!
4 INACTION!
5 Decoy Effect Loss Aversion Inertia Overconfidence Anchoring
Social norms Inattention Confirmation Bias
Hindsight bias Status Quo Bias
6 The false assumption is that almost all people, almost all of the time, make choices that are in their best interest or at the very least are better than the choices that would be made by someone else.”
Richard Thaler, Cass Sunstein, 2008
8 Basic Choice Architecture
9 Basic Choice Architecture
10 Basic Choice Architecture
Most products sold are just on the border between A and B although this is an arbitrary border.
Thousands 48%
300
250
200
150
100
50
0 A++ A+ A B C
11 In many cases behavior is systematic
The good news is that we can predict and counteract it..
12 What is Nudging?
There are several ways how we can influence behavior.
Thaler and Sunstein (2008) defines a nudge as: “... any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting the fruit at eye level counts as a nudge. Banning junk food does not.”
13 What is Nudging?
Who can be nudged?
Vegetarian Food Meat Dish
Meat Lovers Vegans
14 15 Menu Effects
16 Experiment 1
In May 2016, for three weeks, we carried out a test with a restaurant in Gothenburg
17 Experimental Design
In May 2016, for three weeks, we carried out a test with a restaurant in Gothenburg
Research question: How can we increase the number of vegetarian meals sold during lunch through nudging?
Menu 1 Menu 2
Vegetarian Dish Meat Dish Fish Dish Fish Dish
XX kr XX kr
A meat dish is also A vegetarian dish available is also available
18 Experimental Design
Menu 1 Menu 2
19 Experimental Design
Depending on where they sat down in the restaurant, the customer either received a Veg/Fish or a Meat/Fish Menu, but could ask for the third choice.
20 Results
Share of total sales over the experimental period
21 Results
22 Lessons Learned
What did we learn from the experiment?
. 1 out of 10 "meat lovers" nudged towards fish
. 1 out of 10 "meat lovers" nudged towards vegetarian dish
. Clearly depends on the type of restaurant and the population frequenting it!
. Climate impact? Depends on type of meat and if consumers "compensate"
23 Decreasing plate sizes
24 Experiment 2
Introducing smaller plates at a buffet decreased the food waste
52 hotels in Scandinavia participated in the experiment.
They were randomly assigned to Treatment (smaller plates) and Control group (regular large plates).
Over a period of 6 weeks the hotels measured the food waste in kgs. It was divided by the number of people staying at the hotel to get a per person number of food waste.
The researchers then compared the food waste in hotels with small plates to those with large plates.
25 Results
20%
When implemented in all Nordic Choice hotels that sums up to 613 tons annually, or 1166 tons carbon dioxide and approximately 31 billion Norwegian kroner.
26 Fuel Efficiency
27 Experiment 3
Reminding pilots once a month to fly fuel efficient significantly decreased fuel use
• Virgin Atlantics Airways • 40,000 airplanes • 314 pilots • 8 months
Gosnell et al. 2016 A new approach to an age old problem 28 Results
29 Results
30 Results
31 Results
• 266,000-704,000 kg of fuel was saved in the 8 month period
• 838,000-2.22 million kg of CO2 abated
• Abatement cost of negative $250 per ton of CO2
Targeting employees could be more effective than targeting the company through taxes, regulations etc.
32 HELPING BY UNDERSTANDING
33 Additional Reading
34 35 Let‘s stay in touch
www.nudgeschool.com
@c_a_gravert
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