Enhancing customer participation in smart energy systems through behavioral science and economics

Abstract

This doctoral dissertation is inspired by the need to explore the human dimension of the clean energy transition for climate change mitigation and adaptation, through the application of behavioural science and economics principles. The first chapter systematically reviews behavioural intervention studies that targeted encouraging of energy conservation and adoption of energy efficiency measures. A total of 56 studies, primarily from the fields of behavioural and social sciences, were evaluated for the effectiveness of behavioural interventions to produce long-term changes to energy consuming behaviour. The aim is to identify the behavioural biases that were overcome, the contexts in which particular types of interventions are more successful and to arrive at reliable long-term energy savings that could be achieved when implemented at scale. The second chapter looks into behavioural traits, in particilar the procrastination trait, of residential consumers and assesses their impact on the success of policy interventions. Behavioural experiments (in the form of online surveys) were conducted on residents in public housing in Singapore to test if their decision to postpone replacement of inefficient electric appliances was due to severe procrastination traits. Further, with statistical analysis, we investigated the prominent contextual factors that could influence the appliance upgrade decision. Results from the behavioural experiment suggest that irrational procrastination could be corrected by behavioural interventions that frame distant benefits of positive action and the loss due to inaction in the present time context. The role of behavioural interventions for correcting the discounting of future climate mitigation actions is explored further. The third chapter of the thesis delves into behaviour change in the society and how persistent behavioural changes could be brought about through the simultaneous engagement of multiple players in a sector. With a mix of Information Technology and Behaviour change interventions, this chapter explores the multiple facets of energy conservation in green buildings. Using focus-group discussions with the multiple players involved in the buildings sector in India, a strategy document was developed to bring about an increased awareness and adaptation towards resource-efficient homes and buildings. This thesis further translates all the results into policy recommendations for the application of behavioural economics into effective energy policy.