Making energy efficiency pro-poor: insights from behavioural economics for policy design

Making energy efficiency pro-poor: insights from behavioural economics for policy design

Download PDF 714 KB

Never, Babette
Discussion Paper 11/2014

Bonn: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

ISBN: 978-3-88985-631-9
Preis: 6 €

This paper reviews the current state of behavioural economics and its applications to energy efficiency in developing countries. Taking energy efficient lighting in Ghana, Uganda and Rwanda as empirical examples, this paper develops hypotheses on how behavioural factors can improve energy efficiency policies directed towards poor populations. The key argument is that different types of affordability exist that are influenced by behavioural factors to varying degrees. Using a qualitative approach, this paper finds that social preferences, framing and innovative financing solutions that acknowledge people’s mental accounts can provide useful starting points. Behavioural levers are only likely to work in a policy package that addresses wider technical, market and institutional barriers to energy efficiency. More research, carefully designed pre-tests and stakeholder debates are required before introducing policies based on behavioural insights. This is imperative to avoid the dangers of nudging.

Über die Autorin

Never, Babette

Politikwissenschaftlerin

Never

Weitere Expert*innen zu diesem Thema

Balasubramanian, Pooja

Sozioökonomie 

Banerjee, Aparajita

Environmental and Resource Sociology, Public Policy 

Brüntrup, Michael

Agrarökonomie 

Burchi, Francesco

Entwicklungsökonomie 

Faus Onbargi, Alexia

Politikwissenschaft 

Malerba, Daniele

Ökonomie 

Mudimu, George Tonderai

Agrarpolitische Ökonomie 

Pegels, Anna

Ökonomin