When "Not Losing" is Better Than "Winning:" Using Behavioral Science to Drive Customer Investment in Energy Efficiency

To comply with legal mandates and least-cost service obligations, electric and natural gas utilities in the United States increasingly must help their customers save energy. However, motivating customers to make large investments in energy efficiency has been challenging. Existing approaches (incentives, traditional marketing designed to raise awareness of energy efficiency programs) could be augmented with approaches derived from behavioral science to better encourage individuals to purchase, install, and properly use technology. This paper uses the TITE model: program designers should choose Target behaviors, choose the level of Intervention, determine the Techniques appropriate for changing behavior, implement the program, and Evaluate the results. Particular attention is devoted to exploring techniques that incorporate psychology, design, and behavioral economics insights into utility energy efficiency programs.

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