The Economics Show What did ‘Nudge’ get wrong? With Nick Chater
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Feb 20, 2026 Nick Chater, behavioural scientist and former member of the UK Behavioural Insights Team, reflects on the rise and limits of nudge-style policies. He explains how nudges differ from regulation and why experiments often focus on individuals. Conversations cover climate policy, auto-enrolment, smart meters, corporate framing, and when systemic rules beat subtle interventions.
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What A Nudge Actually Is
- A nudge changes how options are presented without removing choices or altering rational incentives.
- It makes the 'right' choice the easy choice for boundedly rational people.
Behavioural Scientist On Climate Committee
- Nick Chater joined the UK's Climate Change Committee expecting behavioural tweaks to help cut emissions.
- He found nearly all effective actions were systemic rules and funding changes, not individual nudges.
Limits Of Energy Feedback
- Smart-meter feedback and neighbour comparisons typically yield only 2–3% energy savings in best studies.
- Such small effects matter at scale but are insufficient to decarbonise the economy alone.
