How feedback saved Virgin Atlantic Airlines $5.37 million dollars, 21.5 million kg in CO2 emissions, and made their pilots happier

Intervention · Employment and Work Performance

Abstract

Airline fuel consumption is costly for both the environment and airlines. Reducing fuel consumption would be a win-win for both. Economists paired with Virgin Atlantic Airways and applied a behavioral approach to see if they could incentivize pilots to use less fuel. As pilots have a degree of discretion over the amount of fuel used, the study looked at how increasing information about fuel consumption, setting personal goals to lower it, and making fuel-saving part of the greater good affected fuel usage. This behavioral intervention was highly effective, resulting in $5.37 million dollars saved and 21.5 million kg less CO2 emissions. 

WANT TO WORK TOGETHER ON A RELATED PROBLEM?

Effective interventions start with a nuanced understanding of how decisions are made. Our mission is to help large organizations be better and do better, using behavioral science.

Learn about what we do

Sources

Gosnell, G. K., List, J. A., List & Metcalfe, R. (2016). A NEW APPROACH TO AN AGE-OLD PROBLEM: SOLVING EXTERNALITIES BY INCENTING WORKERS DIRECTLY.NBER  Working Paper Series. http://www.nber.org/papers/w22316.

Notes illustration

Eager to learn about how behavioral science can help your organization?