Households’ intentions to adopt low-carbon technologies: the role of discounting and anticipated regret

Households' decisions to invest in Low Carbon Technologies (LCTs) can help reduce greenhouse gas (GHG) emissions, support climate change mitigation, and lower energy bills. Based on a survey of 1355 respondents in the UK, we examine the role of discounting and of a behavioural nudge in the form of anticipated regret on households' stated decisions to adopt LCTs. Using logit and count data models, invoking the notion of anticipated regret increases households’ willingness to adopt LCTs by about 4-12%, depending on the specific technology. This finding translates into expected GHG emissions reductions of about 1 to 11%, depending on the LCT adopted. Respondents exhibiting hyperbolic discounting – that is, present-biased individuals who place greater weight on immediate outcomes than on future ones – report a 3-7% lower willingness to adopt LCTs than patient respondents. The results suggest that, to increase LCTs uptake, especially given the prevalence of present-biased preferences in our sample and in most other studies, nudges should emphasize immediate benefits of adoption, such as comfort, and social status, over long-term savings. We further examine differences by gender and age, providing insights for policy design, particularly for interventions aimed at vulnerable populations and at strengthening resilience to climate change. • First paper to explore discounting and anticipated regret in LCTs adoption. • Anticipated regret increases willingness to adopt LCTs by 4-12%. • Impatient respondents are 3-7% less likely to adopt LCTs. • An anticipated regret campaign would reduce emissions by up to 11%.