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• W984112845 abstract "A man in the UK opens his email after receiving his monthly energy bill. Along with a smorgasbord of information about energy conservation and his current spending on energy, he sees how much he could potentially save by doing small things, like insulating doors and windows and using more efficient light bulbs. The next day at the supermarket he passes an aisle filled with draft blockers and LED lights. Remembering the email and that potential 200 pound saving, he purchases three energy efficient light bulbs and schedules to have his door reinsulated. This is one example of a new technique the UK government is using to encourage citizens to be ecofriendly, while avoiding the pitfalls of expensive public policy. In 2010, the UK partnered with an intelligence and consulting company to give its more ineffective and expensive policies a nudge in the right direction. The aptly named Nudge Unit, or more formally, the Behavioral Insights Team (BIT) is co-directed by the UK Cabinet Office and Nesta, the leading UK charity for innovation. The BIT uses 'nudging', or'behavioral insights', at the intersection of psychology, political theory, behavioral economics, and social anthropology, to engineer more effective and efficient policy to influence social behavior. Policy goals range from getting more people to save for a pension or actively look for a job if they become unemployed, to encouraging people to recycle or donate to charity. But what exactly counts as a 'nudge'? According to Richard Thaler and Cass Sunstein, authors of the book Nudge, it is aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. Thus including more footage of actors recycling in popular TV shows counts as nudging, but limiting trash collection to once a month and expanding recycling pickup to twice a week does not. Nudging is all about using incentives, responses, and psychology to design effective policy. Beyond working closely with the UK government, the BIT helps other companies, small businesses, and charities use behavioral insights to improve internal affairs and productivity. In addition, the BIT runs workshops and seminars on behavioral insights policy design for multinational organizations such as the UN and World Bank. The BIT defines four stages for creating an effective policy. The first is to outline the ultimate goal (for example, increasing the amount of people that save for a pension). The second is to understand the context in which individuals currently view the ultimate goal (who saves for pensions, who does not, and why).The third step is to aggregate information on people's behavior and come up with ways to meet the ultimate goal (make it easier or more convenient for people to save for their pension by automatically enrolling them in a pension plan). The final step is to test the new policies with randomized and controlled trials to see if the new policy is more effective than the old way (automatically sign up some people at larger companies for pensions, and compare how much that group saves in comparison to their peers who were not automatically signed up). The key to BIT policy and the bulk of step three is the Easy, Attractive, Social, and Timely (EAST) set of insights. Study results from the BIT indicate that the most effective policies incorporate all four of these. The Easy part harnesses the tendency to stick with the default: people avoid signing up for or canceling services if they imagine the process will be a hassle. By changing the default to automatically sign someone up for a service, nudging guides individuals toward choices the government considers desirable. …" @default.
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• W984112845 date "2015-03-22" @default.
• W984112845 modified "2023-09-24" @default.
• W984112845 title "European Policy: A Nudge in the Right Direction" @default.
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