the potential of nudging for greening economic governance ... · innovation and guaranteeing...
TRANSCRIPT
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The potential of Nudging for greening economic governance at EU and national
level
Presentation to Expert Group on Greening the European Semester
7 September 2015
Katrin Recke, AIM
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Who is AIM?
AIM represents European manufacturers of branded consumer goods.
21 national associations
• 1800 companies of all sizes
45 corporate members
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AIM Mission
To create for brands an environment of fair and vigorous competition, fostering innovation and guaranteeing maximum
value to consumers now and for generations to come
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Nudge – a brief introduction
Richard
Thaler
Cass
Sunstein
• Any aspect of choice design “that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic incentives”.
• “liberty-preserving approach that steers people in particular directions, but that also allows them to go their own way”.
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Nudge – behavioural science
Source: BVA Nudge Unit
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Some Nudge examples…
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Some Nudge examples…
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Some Nudge examples…
How to get more people to take the stairs by making it appealing and fun to do so…
Singapore Bugis MRT station The Fun Theory experiment
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From the academic world to governments – nudging as a policy instrument
Source: BVA Nudge Unit
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From the academic world to governments – nudging as a policy instrument…at national level
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From the academic world to governments – nudging as a policy…at EU level
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Different policy options – as seen by DG JUST
13
Paternalistic Libertarian
Ban Subsidy Nudge
Tax Information provision
Injunction
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1
4
Behavioural Economics studies in the European Commission
Completed (11)
On-going (4)
Just launched (2)
Source: DG JUST Nov 2014
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DG JUST Nudge example
Signs were installed on all floors in F101 and B232
15
Lift door sticker
Lift button sticker
Footsteps stickers
Posters
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Results of DG JUST Nudge
16
-20%
-28%
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Private nudging – the Role of Brands
Brands are in a privileged position to nudge consumers based on their unique relationship with them, and their scale and outreach: • in the consumer home through their presence • through communication/marketing • at the point of sale. AIM wants to promote the idea of “ nudging for good” by companies/ brands to contribute to public policy goals
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Private nudging – Nudging for Good
Our definition:
How a brand, on the basis of consumer insights, to make it easy and desirable for consumers to change behaviour or habit and adopt a healthier and/or more sustainable one.
Nudging is a complementary tool in the vast array of actions that brands are already implementing for health and sustainability.
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Nudging for good – why do it ?
• Business Sustainability • Consumer/Societal demand • Innovation through social value • Being part of the solution BRANDS want to continue to exist and remain relevant to consumers in a changing world.
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Nudging for good – what’s in it for the consumer?
Making healthy & sustainable behaviour easy…
…whilst preserving freedom of choice…
… and making a difference to their lives
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Nudging for good – examples from the industry
Encouraging consumers to wash at 30° instead of 40°
or 60°
Switching from mindless to mindful eating
Helping parents with infant child care
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Nudging and greening economic governance
• National government to set up « behavioural economics » or « nudge units » ?
• Look to collaborate with the appropriate stakeholders to create Public-Private Partnerships “Vivons En Forme” (FR) EU Commission platforms (diet & physical activity, healthy
ageing, responsible drinking)
• Select topics which are top of mind for public policy-
makers and citizens
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Some ideas for nudges to underpin public policy - Littering
Show the way and make it easy through green footprints Implemented by Copenhagen municipality since 2012
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Some ideas for nudges to underpin public policy - Gum Litter
• Gumdrop and Gumdrop on-the-go, pink receptacles designed specifically for the disposal of waste chewing gum, are collected, recycled and processed to manufacture new Gumdrops.
• Campaigns to involve citizens are organised with municipalities
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Some ideas for nudges to underpin public policy - Energy consumption reduction
• O-Powever (US energy company )
• Feedback-based nudge
• Peer pressure
Source: Use of social comparison in Home Energy Reports, by Opower
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Some ideas for nudges to underpin public policy - Health, nutrition & obesity
• Programme initiated by FLVS (a non-profit association created by 2 French municipalities)
• Goal: health - prevention & promotion • Positive, progressive and concrete actions focused on
pleasure of eating, moving and sharing • Levers: social marketing to galvanise the community
(education, games, sports); public-private partnerships; involvement of health professionals
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Nudging and greening economic governance
The Circular Economy – an opportunity for public nudging? How to incentive citizens to sort their waste ?