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How can a simple action like conserving hot water lead to unexpected and lasting benefits in other areas of our lives? Harald Mair, a Senior Researcher at the Department of Economics, and co-authors explored the ripple effects on people’s behavior within the context of a hot water-saving initiative conducted in Switzerland.
A recent study by Harald Mair and co-authors investigates the unintended consequences of a hot water conservation intervention in a large-scale field experiment in Switzerland. Although the intervention specifically targeted hot water consumption, it produced significant spillovers, particularly a 5.63% reduction in room heating energy consumption, which persisted for a year. The room heating ripple has notable welfare implications, as it leads to considerable savings in utility bills and reduces environmental externalities. These findings highlight the importance of considering non-targeted behaviors in evaluating the overall effectiveness and welfare impacts of environmental interventions.
One behavior change can lead to another one
This study adds to the growing research on how one change in behavior can lead to other unexpected changes, especially in environmental policies. It introduces a new way of thinking about these ripple effects, focusing on three main types: behaviors that complement each other, direct influences on similar actions, and changes in how people see themselves. The findings show that these positive ripple effects can make interventions more effective, countering worries about potential downsides. The paper suggests that more research is needed to understand when and where these ripple effects happen and how they affect the overall success of environmental policies.
