SwitchMed Connect 2016 Policy Track 3: Use of Behavioural Economy in Public Policy to Shift Behaviour The Global Perspective – UN Environment

The role of Sustainable Consumption in SCP

Consumption patterns Many efforts have been made to influence the way goods and resources are produced, priced, and distributed – PRODUCTION There has been less attention to the fact that people consume what is produced; producers supply what they believe consumers demand – CONSUMPTION Thus, addressing both supply and demand sides for sustainable goods and services in our marketplaces is necessary. Incorporating a more demand-oriented and consumer-focused approach in policy and governance frameworks is critical to encouraging more sustainable consumption patterns in practice. Individual behavior plays a significant role in consumption.

The systemic approach to SCP Sustainable resource management Design for sustainability D4S Cleaner production & Resource Efficiency Sustainable transport Eco-labelling and certification Sustainable procurement Sustainable marketing Sustainable lifestyles Waste Management Sustainable products based on life cycle approach

Understanding behaviour Behavioral science studies decision-making to better understand the complexities of individual behavior. Applying findings from this field to public policy and program design offers new and potentially powerful opportunities to influence consumer choice and increase impact. This is achieved by using insight from psychology, behavioral economics and other social sciences. It helps us understand the mental processes that lead to certain decisions.

Applying behavioural science Governments across the globe are starting to incorporate behavioral science into their policy making. Early adopters: UK and USA. Expanding to include Australia, Canada, Colombia, Denmark, Germany, Israel, Netherlands, New Zealand, Norway, Singapore, South Africa, Turkey and the European Union. To take the best opportunities emerging from behavioral science, it is important that its application is CONTEXT BASED – building on a close understanding of the habits of the local communities. I.e. what works in one place, for a population, may not work elsewhere.

Initial findings and recommendations (study to be published by end 2016)

Influencing human behavior Influencing human behavior is very challenging. Our decisions and behavior is frequently not predictable. The main barriers to the application of behavioral sciences are: Decisions are frequently not “real decisions”, but rather the result of habits When the consumer makes a decision / chooses, he/she frequently is not aware of the impact it generates Information which is provided to consumer and should help them in making such decisions is frequently confusing

Examples of application: Water Experience of World Bank to understand attitudes toward household water use in Belén, Costa Rica (a town of about 21,000 residents). To accomplish a reduction in water consumption, three low-cost, letter-based interventions were adopted: Two of the interventions provided a sticker on a residence’s water bill that either compared the household’s water use to the average household in their local neighborhood or their town, Belén. The third intervention provided postcards along with the water bill with advice on how to make concrete plans to reduce water consumption. On average there was a 4.6% reduction in water usage. This translates into 94,080 washing machine loads, 188,000 showers, or 222,000 dishwasher loads saved - in a single month.

Examples of application: Transport Traffic congestion in Bangalore, India is a significant problem. Growth in the Information Technology and call centre industry, as well as a new airport, has led to long commutes from the main residential areas to new industrial development. Average commute times for those leaving after 7:30 AM are about 1.5-2 times longer. Transportation consultant Urban Engines tested the effects of an incentive scheme called INSTANT that rewarded commuters with entries into a weekly raffle. The programme reduced the average morning peak commute time from 71 to 54 minutes—with the number of participants traveling before the peak shifting from 21 to 34%.

Examples of application: Food In UK, more than one third of purchased food is unused and discarded. This is equivalent to 6.7 million tons of food annually, totalling a cost of £10 billion per year for households. UK Waste Resource and Action Program launched the “Love Food, Hate Waste” program in 2007. It included the following activities: Consumers were encouraged to make a shopping plan to prevent over-purchasing and impulse buys. Recipes were distributed to use leftovers, to encourage properly portion food through a portion calculator. Specific tips were provided on how to properly store food, and clarified what the often confusing “use by date” means. From 2007 to 2010 there was a 13% decrease in food waste.

Next steps in advancing work on behavioural economics The development of the study which will be launched later this year is just the first step in the process. Within the CONSUMER INFORMATION PROGRAMME a working group is being established to carry out the following activities: Explore the ‘value-action gap’, to investigate and potentially test what drives individual behavior in different cultural and generational contexts. Collate existing knowledge and case studies, and identify sets of actions that could be taken per region/ generation/ product category. Recommendations developed into project or activity proposals for the 10YFP CI-SCP to pursue. Interested experts and institutions are welcome to join! Contact: Bettina.Heller@unep.org