How can a simple piece of information about hot water usage lead to unexpected energy savings across an entire building? Join host Martin Schmalz on The Property Pod as he explores fascinating research from economist Harald Mayr at the University of Zurich, who is uncovering the surprising ripple effects of behavioral interventions in energy conservation.

This episode examines the landlord-tenant dilemma - a fundamental challenge where landlords must invest in energy efficiency improvements but tenants receive most of the benefits, causing economically beneficial projects to stall. Harald's field experiment in Swiss rental properties tested whether providing tenants with information about their hot water consumption could reduce energy use. The intervention included usage feedback, modest savings goals, and small lottery prizes for those who met their targets.

While the experiment successfully reduced hot water consumption by 5-6%, something unexpected happened: tenants also significantly reduced their heating energy use - behavior that wasn't even targeted. This spillover effect proved to be the main driver of energy savings, lasting at least a year after the intervention. The findings suggest that when people successfully change one environmental behavior, they develop a self-image as environmentally conscious individuals, which then influences other energy-related behaviors.

Key insights include:

• Why economically beneficial energy efficiency projects often don't happen in rental properties
• How an information campaign about hot water use reduced both hot water and heating consumption
• The psychology behind spillover effects in environmental behavior
• Future research directions on individual metering vs. building-level energy billing

For the real estate sector, this demonstrates how low-cost behavioral interventions can be effective even when financial incentives are minimal, highlighting the importance of information and environmental awareness in driving conservation.

Disclaimer: The audio of the intro and the outro were generated using AI.

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