Engineering energy efficiency among residential customers in Dhaka using home energy reports (HERs)

Policy brief Sustainable Growth and Energy

This policy brief relays findings from an intervention measuring the impact of social feedback and nudges in promoting energy-efficient behaviours in Dhaka, Bangladesh. Findings indicate that such interventions can be effective and that policymakers should prioritise integrating non-price incentives, such as social comparison and personalised feedback, into energy conservation efforts.

  • With the rising energy demand in low-income countries, promoting energy efficiency becomes paramount in mitigating greenhouse gas (GHG) emissions.
  • Electrical power generation stands out as a primary contributor to GHG emissions.
  • With the escalating energy demand and continued reliance on fossil fuels for electricity production, low—and middle-income countries are expected to contribute significantly more to GHG emissions.
  • Non-price incentives, such as information and social feedback mechanisms, including comparisons of individual consumption with neighbours, can potentially motivate energy-efficient behaviours.
  • While the findings indicate that such interventions can be effective, it is essential to note that their impact may be short-lived, with possible rebound effects.
  • Policymakers should prioritise integrating non-price incentives, such as social comparison and personalised feedback, into energy conservation efforts.
  • Long-term strategies must address potential rebound effects in the context of low-income countries to ensure sustained impact.