Project Energy Code - Issue 5

Project Energy Code facilitates a discussion among energy professionals about the “green gap” between consumers’ stated intentions and their purchasing behavior. In this paper, Professor Dean Karlan of Yale University explains why individuals fail to follow through with their plans, and suggests that policymakers and relevant businesses can employ "nudges" to help communities generate measurable energy savings. This paper is intended to help policymakers and businesses understand why nudges work, what makes for a good nudge, what experimental evidence support nudges, and what further innovation is possible specifically using "commitment devices."