Leveraging the motivational effects of labels: Lessons from retrofitting

Retrofitting—replacing obsolete home infrastructure with more energy-efficient substitutes—will be essential to reducing energy use and carbon emissions in the future. Yet European American households have proved reluctant undertake these changes. Evidence has shown that a audit can motivate people retrofit their homes. In this article, we show including EU label—which displays property's energy-efficiency rating—in reports is simple way enhance audit's effectiveness: When labels are required as part of process selling property, sellers become motivated if doing so boosts property into higher efficiency category on label. Drawing insights from behavioral science literature, offer suggestions for how policymakers leverage motivation expand household investments retrofitting. Although our proposals focus retrofitting, some them could also encourage other actions would reduce consumption.