ABSTRACT

Cities are the primary energy users in developing countries and municipal governments play an essential role in designing and implementing energy efficiency (EE) policies and programmes. Municipal governments in developing countries need some low-cost and effective solutions to tap the enormous potential for EE improvement and conservation. The recent development in behavioural economics offers some smart policy solutions. And governments in developed countries are taking the lead in integrating BIs into their policy designing and implementation. By nudging, municipal governments can encourage individuals to opt for EE products and actions, without providing massive subsidies nor curtailing citizens’' freedom of choice. This chapter will examine the successful examples of nudging for EE improvement in various parts of the world and explore the potential of replicating the successes in the context of developing country cities.