This paper reviews the current state of behavioural economics and its applications to energy efficiency in developing countries. Taking energy efficient lighting in Ghana, Uganda and Rwanda as empirical examples, this paper develops hypotheses on how behavioural factors can improve energy efficiency policies directed towards poor populations. The key argument is that different types of affordability exist that are influenced by behavioural factors to varying degrees. Using a qualitative approach, this paper finds that social preferences, framing and innovative financing solutions that acknowledge people’s mental accounts can provide useful starting points. Behavioural levers are only likely to work in a policy package that addresses wider technical, market and institutional barriers to energy efficiency. More research, carefully designed pre-tests and stakeholder debates are required before introducing policies based on behavioural insights. This is imperative to avoid the dangers of nudging.
Energy efficiency has a plethora of benefits on the individual, organisational, and social levels. However, there is still a gap between knowledge and implementation. While market failure serves as an important barrier to energy efficiency uptake, so do the characteristics of human behaviour.
REDD is one of the latest additions to a series of incentive-based mechanisms for reducing carbon emissions. Many developing and emerging countries have started engaging in REDD.
This Discussion Paper presents a normative concept of green industrial policy, which is defined as encompassing any policy measure aimed at aligning the structure of a country’s economy with the needs of sustainable development within established planetary boundaries.
This paper analyses the interdependency of water and energy in India’s wastewater sector. Wastewater treatment plants consume a great deal of energy. Energy-efficient technologies are available, but are only spreading slowly in developing countries.