How can research help: what is the gap in understanding that should be addressed most urgently?

In the last two decades, the debate around addressing climate change has rightly focused on identifying – and supporting – the most suitable technologies to decarbonise our economies. Consequently, significant progress has been achieved in the decarbonisation of the power sector. However, as the priority is now to decarbonise hard-to-abate sectors such as power and heat, key questions around consumer behaviour are coming to the fore.

First and foremost, while consumers and citizens are increasingly conscious of the importance of addressing climate change and environmental degradation, there is not yet sufficient clarity on what behaviours have the most significant impact on our planet.
Furthermore, it is yet to be seen what policies will be most appropriate to drive behavioural changes. While mandating is certainly a quick and effective way of reaching the targets, top-down approaches are often likely to provoke adverse reactions within the public opinion. On the other hand, providing economic incentives can raise questions about who has to pay for the energy transition.

Hence, research will have an increasingly important role in helping us understanding consumer behaviour, with a focus on achieving socio-economic transformations that are at the same time equitable and sustainable. The energy transition needs to be a collective journey, involving as many stakeholders as possible and, for the transition to be successful, it is essential that consumers and citizens develop a sense of ownership and a genuine commitment. To foster involvement, public debate will therefore be essential.
Identifying the most suitable paths to decarbonise the economy will require an inter-disciplinary approach, involving – among the others – policymakers, businesses, energy practitioners and consumers, but also scholars of various disciplines, including consumer psychologists and behavioural economists.

Research questions around consumer behaviour are not only interesting for policymakers, though. Corporates and investors that are eager to play a role in the decarbonisation of our economies are eager than ever to understand what kinds of consumer behaviour are set to prevail.

For example, what will be the key factors in persuading consumers to buy electric boilers? And, when it comes to electric vehicles, what charging behaviours are set to prevail? An imperfect understanding of future trends heightens the risk of investing in stranded assets. Thus, there are few doubts that social scientists will have, therefore, a big role to play in the next wave of decarbonisation.

Citizen and consumer participation is one of many topics covered in the British Institute of Energy Economics (BIEE) Energy for a Net Zero Society conference sponsored by Cornwall Insight on 13-14 September.

Ahead of the British Institute of Energy Economics (BIEE) conference, Anna Moss, answers this question: What should the government’s key message be at COP26 to help consumers understand a net zero future?

Related thinking

Low carbon generation

Energy System Reform: Ofgem shares plans for Britain’s energy system

Against the backdrop of record high and volatile energy prices, Ofgem set out on 8 July its view on key aspects of the GB energy system where it considers significant reform is required to deliver a resilient, low cost, low carbon energy sector. Recent developments in the energy market, such...

Energy Market Design

Can we fix the wholesale energy market this winter to lower prices and should we want to? 

The Review of Electricity Market Arrangements (REMA) is intended to discuss and decide on appropriate market arrangements for 2035 in a Net Zero, low marginal cost, renewables-dominated market. It is unlikely it has the scope or capability to intervene in the market arrangements ahead of this winter. Therefore, some new interventions...

Commercial and market outlook

Two thirds of energy industry professionals think the market needs to be drastically reformed

A survey conducted of over one hundred leading energy market professionals from across the investment and advisory community, by Cornwall Insight, from the attendees of its Financing Net Zero forum, has shown nearly two thirds (63%) of people working in the energy industry1 believe the UK market needs to be...

Commercial and market outlook

Reaction to BEIS consultation on the Review of Electricity Market Arrangements

Confirming the Review of Electricity Market Arrangements (REMA) opens the prospect of a complete overhaul of the electricity market in Great Britain for the first time in over 20 years. The scope is very wide and the perceived need for reform clear from BEIS in the consultation document, with much...

Low carbon generation

A collection of resources on net zero – Net Zero Week 2022

For Net Zero Week 2022, we released a range of resources to help you on your journey to net zero. For convenience, we have put them all together in a handy Resource Report. To read the full collection of resources, please log in to your account or sign up for...

E-mobility and low carbon

Another one bites the dust: Plug-in car grant ends

Last week the government announced the plug-in car grant scheme for electric vehicles (EVs) closed, having previously confirmed funding until 2022-23. Why? Well, the government stated it would allow it to concentrate funding towards what it called the main barriers to the EV transition, including public charging and supporting the...

Home supply and services

Windfall taxes are not the only solution to the energy crisis

The energy market is in a state of transition, with geopolitical concerns threatening to undermine energy security and subsequent wholesale energy rises pushing up bills. It is inevitable that policymakers will look at how best to deliver an affordable energy system for consumers. The temporary, targeted energy profits levy, or...

Announcement

2021/22 Australian energy insights report

Analytics on key current developments in the Australian energy industry are available Cornwall Insight Australia has released a compilation of Australian energy insights, charts, and analyses. The report includes the topics of energy storage and flexibility, generation (all technologies), power prices, low carbon generation, FCAS, policy and regulation, and transmission...