Jun 25, 2009

Counter-productive

by Tim Ogden

This week a huge “Carbon Counter” was unveiled near Madison Square Garden in New York. The display, similar to the National Debt Clock, aims to provide a reasonably sound, real-time estimate of global carbon emissions (you can see the counter on the web here). The reason the counter is notable is that the sponsors and creators get the science behind the counter exactly wrong. Not the science of carbon emissions or climate change, but the behavioral economics and psychology that purportedly explains the purpose of the counter. In their press statement, the sponsors say, “Behavioral economists will tell you that the simple act of placing an electricity consumption meter in plain view can substantially cut a home’s energy use. The same goes for real-time miles-per-gallon meters in cars, which change the way we drive.“ This is true—but it is equally true that the reason such meters work is that the individual gets real-time feedback on the effect of various actions they take. They meters shorten the feedback loop from cause to effect and make the connection easy to see and understand. However, the same economists and psychologists who have demonstrated the effect of personal electricity and gasoline consumption meters have also proven that showing people big numbers with no feedback mechanism does two things: 1) causes people to tune out the information that they cannot easily assimilate, and 2) convince themselves that the number is completely out of their control; individual action is pointless.

So, rather than being helpful, the carbon counter is counterproductive. It doesn’t encourage people to take action; it tells them that action is irrelevant. Despite the claims of carbon neutrality for the display (achieved through offsets), the display is actually quite strongly contributing to the problem of carbon emissions. A much better use of funds, though far less public, would be buy and install some of those personal electricity and gasoline meters.

NB: for an excellent discussion of how to help people make better decisions and when information helps and when it hurts, read Nudge by Cass Sunstein and Richard Thaler. We can’t recommend it highly enough.