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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
Who is AIM?
AIM represents European manufacturers of branded consumer goods.
21 national associations
• 1800 companies of all sizes
45 corporate members
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
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”.
Nudge – behavioural science
Source: BVA Nudge Unit
Some Nudge examples…
Some Nudge examples…
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
From the academic world to governments – nudging as a policy instrument
Source: BVA Nudge Unit
From the academic world to governments – nudging as a policy instrument…at national level
From the academic world to governments – nudging as a policy…at EU level
Different policy options – as seen by DG JUST
13
Paternalistic Libertarian
Ban Subsidy Nudge
Tax Information provision
Injunction
1
4
Behavioural Economics studies in the European Commission
Completed (11)
On-going (4)
Just launched (2)
Source: DG JUST Nov 2014
DG JUST Nudge example
Signs were installed on all floors in F101 and B232
15
Lift door sticker
Lift button sticker
Footsteps stickers
Posters
Results of DG JUST Nudge
16
-20%
-28%
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
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.
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.
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
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
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
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
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
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
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
Nudging and greening economic governance
The Circular Economy – an opportunity for public nudging? How to incentive citizens to sort their waste ?
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