Technological Innovations, Behavioural Interventions, and Household Energy Conservation

Abstract

The threats associated with climate change and the worsening ecological crisis have led to a growing interest in energy-conservation policies. Policymakers across the globe have been scrambling to find cost-effective and sustainable methods to meet the world’s growing energy demands. Traditional policies have so far largely focused on supply-side interventions aimed at encouraging energy efficiency via green innovation and new technologies. However, as several studies have indicated, supply-side policies alone are unlikely to be adequate to achieve the ambitious changes required to make our future sustainable. This review article draws on recent studies in behavioural economics to emphasize the need to reorient public policy towards altering consumer end-uses through behavioural interventions. In an attempt to draw out important lessons for public policy, the article reviews this emerging strand of literature and underlines the complex factors that influence energy consumption in a household.

Urban Households’ Investment Behaviour Towards Home Appliances in India: Do Gender and Neighbourhood Effect Matter?

“…Understanding the influence of the neighbourhood effect is required for more insightful research and policy formulations to promote sustainable energy solutions. For instance, the role of the peer effect has been studied in developed countries such as the USA and European Union for household energy conservation; however, there is a lack of studies in developing countries like India (Bahinipati et al, 2022). Therefore, this study aims to understand the influence of neighbourhood effect on household appliance ownership, for example, refrigerators and air conditioners.…”

“…While the literature on the neighbourhood effect shows positive outcomes on the ownership of new vehicles, and solar photovoltaic technologies, discussions on its impact on appliance ownership have been sparse. Research on behavioural theories concerning household energy consumption behaviour and energy efficiency investments shows the involvement of a strong social component, that is, being influenced by others in household behaviour is more powerful than cost considerations (Bahinipati et al, 2022; Wolske et al, 2020). Therefore, we argue that household appliance ownership accelerates when appliance use is increasingly visible in the neighbourhood areas.…”