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