The Psychological Underpinnings of the Consumer Role in Energy Demand and Carbon Abatement

Abstract

While policy targeting carbon mitigation has become a priority, the consumer has been sidelined. Within the EU standards and a carbon is price at the industrial level dominate mitigation efforts. There is little room for consumer preferences. Labels on some products do draw a demand for efficient goods, though the messages relayed vary, and the role of embedded emissions often ignored. Once purchased, the energy requirements of various goods and their energy settings are poorly understood by many. In this paper we suggest with appropriately structured policy, providing information and a nudge, that consumers have a willingness and potential to significantly reduce carbon emissions.