The coming Carbon Reduction Commitment measures and demands business pay for any increase in carbon output. Most businesses see technological advance as the only way to manage carbon output. Few consider their human capital as…

Well, few consider their human capital at all. But in their hands lies behaviour patterns that can deliver almost costless carbon reductions. Or, if you’re not careful, very expensive carbon increases. Behaviour is important. What simple ways can you create behaviour that delivers carbon reductions?

Here’s our list of 5 incentives:

  1. Ask people to indicate the extent to which they think energy efficiency is a good thing. You get to engage people’s cool, calm, rational brain – the part that’s used to plan an early start in the morning, rather than the bit that hits the snooze button (over and over again).
  2. Make it a public. We’re much more likely to be consistent with a promise made in public than one made in private – who wants to look like a hypocrite?
  3. Focus on what stands to be lost instead of what stands to be gained. Loss aversion is such a strong quirk of ours it almost feels like cheating to use it. Broadly speaking we feel 1 unit of happiness if we gain £100, but feel 2 units of pain if we lose £100.
  4. Tell them what their neighbors are doing.. As soon as we find out a behaviour of ours might be considered a little strange our automatic response is to correct it in favour of the ‘norm’.
  5. Tell them what experts are saying. The Authority effect means people likely to obey and believe experts.

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Notice that none of the points I’ve raised involve a catchy slogan or an image to try and describe the effect carbon has on the world – because neither willingness nor simple exposure to messages has a great deal of impact on people’s behaviour. A more sophisticated understanding is required to overcome barriers to action.

And it’s those barriers that are the next great frontier.

“When we look at the remaining potential for efficiency, changing consumer behavior is the next wave of savings that needs to be tapped.” says Tim Stout, vice-president of energy efficiency at [Massachusetts utility] National Grid.

As Dr. Robert Cialdini – the ex-Regents’ Professor of Psychology and Marketing Arizona State University – put it, you simply need to

“…marginalise undesirable behaviour.”

What do you think?

For more on this speak with us, or have a look at our capabilities

Also, as co-founders and supporters of the London Behavioural Economics Network, join the Meetup group and Facebook group for more details and events

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