From the IEA DSM Task 24 expert workshop in Wellington, NZ on February 15. An overview of some of the better-known stories where DSM policy or programme implementation fell short - often due a misplaced understanding of human rationality.

1. Implementation
bloopers - regulation
NZ Task 24 workshop, Feb 15, 2013

2. or: it ain’t easy to be a
policymaker

3. or: it ain’t easy to be a
policymaker

4. or: it ain’t easy to be a
policymaker

5. or: when good intentions lead to
unintended consequences
Jevons paradox
Rebound

6. or: when good intentions lead to
unintended consequences
Jevons paradox
Rebound
Prebound

7. (policy and programme)
design issues
(it’s not just regulation)

8. information campaigns:
translation issues
Heatpumps are very energy
efficient!

9. information campaigns:
translation issues
Heatpumps are very energy
efficient!
Right?

10. perverse outcomes:
nudge/normative feedback
Abstract
JEL Codes: Q41, D03, D72
Energy Conservation “Nudges” and Environmentalist Ideology: Evidence from a
Randomized Residential Electricity Field Experiment
“Nudges” are being widely promoted to encourage energy conservation. We show that the
popular electricity conservation “nudge” of providing feedback to households on own and peers’
home electricity usage is two to four times more effective with political liberals than with
conservatives. Conservatives are more likely to increase their consumption if told that they are
not big electricity users relative to their neighbors.
Dora L. Costa
UCLA Department of Economics
9272 Bunche Hall
Los Angeles, CA 90095-1477
and NBER
costa@econ.ucla.edu
Matthew E. Kahn

11. BAU classical economics
example: insulation subsidies
Australia vs New Zealand

12. BAU classical economics
example: insulation subsidies
They’re a big success here...
Warm Up New Zealand reaches its target ! EECA: Energ""" http:##www"eeca"govt"nz#news#warm$new$zealand$reac"""
EECA: Energy Efficiency and Conservation Authority
Warm Up New Zealand reaches its target
29 November 2012
MEDIA STATEMENT FROM MINISTER OF ENERGY AND RESOURCES, PHIL
HEATLEY
The Government insulation programme Warm Up New Zealand: Heat Smart has reached
its original target of insulating 188,500 homes - ahead of schedule and below budget,
Energy and Resources Minister Phil Heatley announced today.
"This successful programme has directly improved the living conditions of many
thousands of New Zealanders," he said.
"Better home insulation has a really significant effect on health and well-being.
"The programme has also supported manufacturing in New Zealand and created jobs.
"It has promoted the benefits of insulation. Anecdotal evidence suggests prospective
tenants and home buyers are now far more likely to enquire about the insulation of a
house they want to buy or rent, because they know it will mean a warmer, drier, healthier
home," the Minister said.
The four-year programme, run by the Energy Efficiency and Conservation Authority
(EECA), was launched by Prime Minister John Key in 2009, providing a subsidy for the
installation of ceiling or underfloor insulation.
Earlier this year, the Government announced that it would be extended to insulate a
further 41,500 homes, taking the total to 230,000. Thanks to savings made within the
programme, this will be achieved for the same overall funding of $347 million.

13. example: insulation subsidies
Over the ditch, it was a problem...

14. example: insulation subsidies
Over the ditch, it was a problem...

15. example: insulation subsidies
Over the ditch, it was a problem...

16. who do you design for?

17. who do you design for?

18. who do you design for?
http://vimeo.com/2727318

19. and are they ready for it?

20. and are they ready for it?

21. and are they ready for it?

22. and are they ready for it?

23. REGULATION: enforcing policy
without changing social norms

24. REGULATION: enforcing policy
without changing social norms

25. REGULATION: just thinking
about it can be too much...

26. REGULATION: just thinking
about it can be too much...

27. REGULATION: enforcing policy
without thinking?

28. however: