Creating Effective Policies: The Influence of Choice Architecture and Legal Design

“You just don’t make a rule and expect people to follow that rule regardless of that environment, you have to create that environment and that is the easiest way to follow that rule and that makes everything a lot easier.” — Lennart Nout

I heard this about mobility and urban development, particularly for adopting driver behavior to the newly adapted rule of traffic or newly designed roads.

When creating policies or laws, it’s not enough to simply make a rule and expect people to comply. Creating an environment that supports and encourages compliance with the policy or law is essential.

This can involve designing policies and laws that are easy to understand and follow and providing resources and support to help communities comply. Sometimes, people may find it challenging to comply with a policy or law, not because they don’t want to, but because they face underlying issues that prevent them from doing so. These issues could be related to a lack of resources or barriers that make it difficult for them to follow the policy or law.

For example, imagine a city implementing a policy requiring all households to recycle their waste. While most people may want to comply with this policy, some may not have access to recycling facilities or cannot afford the recycling cost. In this case, simply making the policy mandatory may not be enough to ensure compliance. The city may need to provide resources, such as free or low-cost recycling services, to help businesses comply with the policy.

In other cases, people may face financial or other barriers that make it challenging to comply with a law or policy. For example, imagine a law that requires all residents to purchase health insurance. While many people may want to comply with this law, some may not be able to afford the cost of health insurance. In this case, the government may need subsidies or other financial assistance to help people comply with the law.

Effective policy-making and legal design require more than just creating rules and regulations. It involves creating an environment that supports and encourages compliance and addressing the underlying issues that may make it difficult for people to comply.

Nudging Effect

The idea of creating an environment that supports compliance with policies and laws is related to the concept of the “nudge” effect. Nudging is a behavior change technique involving small, subtle environmental changes to encourage people to make better decisions.

In the book “Nudge” by Richard Thaler, a choice architect designs the environment in which people make decisions. A choice architect can influence people’s behavior by presenting choices in a certain way. Thaler argues that choice architects are responsible for designing environments that promote good decision-making by making the desired choice the easiest or default option. This approach, known as libertarian paternalism, seeks to guide people toward choices that are in their best interests while preserving their freedom to choose.

The nudge approach recognizes that people are influenced by their environment and that small changes can significantly impact behavior. An excellent example of choice architecture can be found in cafeteria design. By placing healthy food options such as fruits and vegetables at eye level and in a convenient location while placing less healthy options like sweets and soda in harder-to-reach areas, the cafeteria creates a choice architecture that encourages people to choose healthier options.

This approach doesn’t remove people’s freedom to choose what they eat. Still, it does make healthier options more visible and accessible, nudging people towards making better choices without mandating them. This is an excellent example of how choice architecture can encourage better decision-making without imposing restrictions or removing choice. Similarly, putting speed limit signs that display how fast a driver is going can nudge drivers to slow down.

Read more about Nudge here by Cass R. Sunstein and Richard H. Thaler.

In both cases, the idea is to create an environment that makes the desired behavior the default option. This is consistent with the idea that simply making a rule or law is insufficient to ensure compliance. Creating an environment that supports and encourages the desired behavior can make it easier for people to comply with policies and laws.

The nudge approach and the idea of creating an environment that supports compliance with policies and laws are based on recognizing that small environmental changes can significantly impact behavior. By using these techniques together, we can create a culture of compliance that makes it easier for everyone to make better decisions.

Real-life examples that demonstrate the importance of creating an environment that supports compliance with policies and laws:

1. Seatbelt laws: Laws requiring drivers and passengers to wear seatbelts effectively reduce injuries and fatalities in car accidents. However, simply passing a law is not enough to ensure compliance. States and cities have implemented education campaigns, enforcement strategies, and incentives like reduced insurance rates to encourage people to wear seatbelts. These efforts have helped create an environment where wearing a seatbelt is seen as normal behavior. In some countries, hefty fines for unseated drivers are also used as a negative nudge.

1. Smoking bans: Laws prohibiting smoking in public places have become increasingly common in recent years. While some people may initially resist these laws, creating an environment where smoking is seen as socially unacceptable can help encourage compliance. This can involve providing resources and support for smokers who want to quit and creating smoke-free areas that are attractive and comfortable for non-smokers.

2. Renewable energy policies: Governments worldwide have implemented policies and incentives to encourage the adoption of renewable energy sources like solar and wind power. While these policies have been effective in increasing the use of renewable energy, they are often more successful when accompanied by supportive infrastructure, such as electric vehicle charging stations and smart grids. This helps create an environment where renewable energy is convenient and accessible for everyone.

3. Tax Compliance: Governments can use nudging to encourage people to comply with tax laws. For example, sending a letter that states “most people in your area have already paid their taxes” can nudge individuals to pay their taxes on time. Similarly, providing pre-filled tax forms can make it easier for people to file their taxes accurately and on time.

4. Health Policies: Nudging can encourage healthier behaviors, such as exercising or eating healthy foods. For example, placing healthy food options at eye level in vending machines can nudge people to make healthier choices. Similarly, providing walking paths and bike lanes can nudge individuals to choose active transportation options.

Vending machine backgrounds: nudging healthier beverage choices -Current Psychology 2023

5. Energy Conservation: Governments can nudge individuals to conserve energy by providing information about their energy use and comparing it to that of their neighbors. This can create a sense of social pressure to reduce energy consumption. Additionally, providing feedback on energy use in real-time, such as through smart thermostats, can nudge individuals to make more energy-efficient choices.

Can nudges help to cut household energy consumption?

Studies highlight that if partnered with the right information, social norm techniques can help change consumer behavior. -The Guardian

It is not enough to have policies and laws to ensure compliance. It is also essential to create an environment that supports compliance by addressing the underlying issues that may make it difficult for people to follow the rules. By doing so, we can create a culture where everyone is encouraged to comply with the policies and laws, which benefits the individuals and the larger society. In other words, a supportive environment helps to create a culture where people willingly follow rules and laws rather than just being forced to do so.