Using Behavioral Economics in The Design of Energy Policies
Behavioral Economics has been applied to three areas of energy policy: (i) reducing energy consumption and creating conservation habits; (ii) promoting the investment in energy efficiency, and (iii) supporting pro-environmental behavior by increasing the provision of public goods. In this publication we go through the available evidence regarding the application of these tools. Additionally, we study the behavior of experts in the field by performing a Behavioral Experiment with Energy Regulators. We conclude that there is potential for the use of Behavioral Economics in the design of Energy Policy in Latin America and the Caribbean.