Heterogeneity in price responsiveness for residential space heating in Germany

Schmitz, Hendrik; Madlener, Reinhard

doi:10.1007/s00181-019-01760-y

Cited by 13 publications

(7 citation statements)

References 36 publications

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“…Findings are, however, typically mixed and inconclusive. For example, lower-income consumers sometimes appear to be more responsive to incentives and energy and technology prices (Reiss and White, 2005 ; Alberini et al, 2011 ; Allcott, 2011a ; Ito, 2015 ; Ida et al, 2016 ; DeShazo et al, 2017 ; Houde, 2018 ; Charlier and Kahouli, 2019 ; Lundgren and Schultzberg, 2019 ; Schmitz and Madlener, 2020 ), but other studies disconfirm or qualify this link (Nesbakken, 1999 ; Herter, 2007 ; Faruqui et al, 2013 ; Moshiri, 2015 ; Zhang, 2015 ; Schulte and Heindl, 2017 ; Hansen, 2018 ; Alberini et al, 2019 ; Harding et al, 2020 ; Prest, 2020 ). Inconsistent findings could be partly due to methodological differences across studies or context-dependency of the effects.…”

Section: Resultsmentioning

confidence: 99%

“…(f) Baseline behavior levels. Findings concerning responsiveness to energy prices of households with different consumption levels are mixed (Herter, 2007 ; Kaza, 2010 ; Gilbert and Graff Zivin, 2014 ; List et al, 2017 ; Royal and Rustamov, 2018 ; Harding et al, 2020 ; Prest, 2020 ; Schmitz and Madlener, 2020 ; Todd-Blick et al, 2020 ; Murakami et al, 2022 ). This could be partly due to context- or behavior-specificity of the effects (see Kaza, 2010 ).…”

Section: Resultsmentioning

confidence: 99%

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Norms, prices, and commitment: A comprehensive overview of field experiments in the energy domain and treatment effect moderators

et al. 2022

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This paper provides a comprehensive overview of field experiments utilizing social norms, commitment and price-based interventions to promote energy conservation, load shifting, and energy efficiency behaviors. Treatment effects reported in the extant literature, as well as the factors that may strengthen or dampen these effects are reviewed. We find that social norm and incentive-based interventions mostly achieve small reductions in energy consumption, and that the effects of commitment-based interventions are essentially zero for the most part. Incentive effects on energy efficiency investments are mostly non-existent, safe for a few exceptions. One gap that we identify is the almost complete absence of field experiments leveraging social norms or commitment to promote energy efficiency investments. We discuss a broad range of (mostly under-researched) plausible moderators of the interventions' effects. Crucially, a more careful attention to moderators in future research can highlight instances in which interventions can be effective, notwithstanding their modest or non-existent average treatment effects. Our review offers a starting point in this regard.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Norms, prices, and commitment: A comprehensive overview of field experiments in the energy domain and treatment effect moderators

et al. 2022

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“…Their results are confirmed by Frondel et al (2015), who studied the inequality in electricity price burden of German households. Schmitz and Madlener (2020) use the dataset used in our analysis to estimate elasticity of heating consumption to a change in prices for different groups. They find that wealth and home-ownership lead to a lower price responsiveness and find a U-shaped elasticity across consumption deciles indicating that families spending the average amount on gas are the least reactive to heat cost shocks.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, we assume 50 percent fix costs that cannot be reduced by individual behavior. Second, we apply gas price elasticities by gas expenditure quantiles, provided by (Schmitz and Madlener, 2020) for Germany. The study finds relatively stable estimates, where a 1 percent increase in gas prices reduces the gas expenditures by -0.33 for the lowest quantile, and -0.36 for the median.…”

Section: Distributional Effect Of the Natural Gas Price Increasementioning

confidence: 99%

The Costs of Natural Gas Dependency: Price Shocks, Inequality, and Public Policy

Kröger¹,

Longmuir

Neuhoff

et al. 2022

SSRN Journal

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“…It was observed that socioeconomic changes had little effect on energy costs, but dwelling size had a significant effect on energy costs. Schmitz and Madlener (2016) investigated the effects of sociodemographic variables such as age and gender on building types and technical characteristics in explaining the heating costs of houses. One of the important findings is that the heating cost rate of low-income dwellings is higher than the dwellings with high income levels.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the Effects of the Dwelling Characteristics on Space Heating Costs with the Rank Correlation Bayesian Network Model

Sevinç

2021

Preprint

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Energy is one of the main concerns of humanity because energy resources are limited and costly. In order to reduce the costs and to use the energy for space heating effectively, new building materials, techniques and insulations facilities are being developed. Therefore, it is important to know which factors affect the space heating costs. This study aims to introduce the novel Rank Correlation Bayesian Network model and its application in analyzing the effects of dwelling characteristics on the space heating costs. The results show that the constructed Rank Correlation Bayesian Network model performed better than the Bayesian networks models estimated by Bayesian search, PC and Greedy Thick Thinning algorithms, which are kinds of structure learning algorithms having different kinds of estimation mechanisms to build Bayesian networks. The constructed Rank Correlation Bayesian Network model shows that the space heating costs of the dwellings are mostly affected by the heating systems used. Coal stoves, air conditioners and electric stoves appear to be the costliest heating systems. The second most important factor appears to be the existence of external wall insulation. The lack of external wall insulation almost doubles the space heating costs. The third most important factor is the building age. Dwellings on the ground floors and the first floors appear to pay the highest space heating costs. Therefore, dwellings on these floors need to be more effectively insulated. As the size of the dwelling increases the heating cost increases too. Another result is that facing directions and floor levels of the dwellings have the least effects on their space heating.

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Heterogeneity in price responsiveness for residential space heating in Germany

Cited by 13 publications

References 36 publications

Norms, prices, and commitment: A comprehensive overview of field experiments in the energy domain and treatment effect moderators

Norms, prices, and commitment: A comprehensive overview of field experiments in the energy domain and treatment effect moderators

The Costs of Natural Gas Dependency: Price Shocks, Inequality, and Public Policy

Analyzing the Effects of the Dwelling Characteristics on Space Heating Costs with the Rank Correlation Bayesian Network Model

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