Analyzing behavioral economic effects - strengthening funding programs for energy efficiency

Funding programs are a key component to the energy policy measures necessary to achieving Germany's energy and climate goals. During the last legislative period, available funds were extended both in the area of financial incentives for investment across all sectors as well as in consultation. However, despite considerable financial incentives, many energy efficiency programmes have a low call rate.

As part of a project to better target recipients of support measures while taking into account behavioural economics approaches; adelphi, together with its project partners, analysed the role that behavioural economic effects can play here. For this purpose, a systematic analysis of two selected funding programs was carried out. Specific recommendations for better targeting recipients were derived from this analysis. The suggestions for improvement pertain to the communication materials that accompanied the program in addition to suggestions for the optimisation of the funding process.  Recommendations for action across other programs were also developed from the application of behavioural economic findings. Here, adelphi took the lead in the analysis of the support measures.