Recent experiences with tariffs for saving electricity in households

Prasanna, Ashreeta; Patel, Martin Kumar; Mahmoodi, Jasmin; Brosch, Tobias

doi:10.1016/j.enpol.2018.01.044

Cited by 25 publications

(21 citation statements)

References 30 publications

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“…Again emphasizing the importance of loss aversion, loss averse people who opt for an electricity-saving tariff have a preference for tariffs without potential financial penalties. Therefore, while adding a financial penalty may be an effective way to promote energy saving (Prasanna et al, 2018;Mahmoodi et al, 2018) and is indeed considered an attractive tariff element by some consumers (such as Segment 5 in the current study), a financial penalty is perceived as repelling by most potential subscribers.…”

Section: Adapted From Thøgersen (2006) Personal Norms Zmentioning

confidence: 85%

“…Few utilities have made use of both goal setting and rewards to design electricity-saving programs (Prasanna et al, 2018). For example, during the Toronto Hydro 2009 Summer Challenge, multiple utilities offered a 10% bill credit to customers who reduced their electricity usage by at least 10% (Bishop et al, 2010).…”

Section: Combining Goal Setting With Reward-based Strategiesmentioning

confidence: 99%

“…In the energy context, Prasanna et al (2018) are the first to discuss the idea of combining goal setting and penalties. They suggest introducing electricity tariffs that contain both an incentive for reaching a saving target and a disincentive for failing to reach this goal.…”

Section: Combining Goal Setting With Penaltiesmentioning

confidence: 99%

See 2 more Smart Citations

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Hille

Weber

Brosch

2019

Journal of Cleaner Production

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Electric utilities play a crucial role in designing and deploying electricity conservation programs. However, because people can freely decide to participate in such programs or not, better understanding what types of programs appeal to specific groups of customers is fundamental. The authors therefore explore preferences of likely subscribers for electricity-saving programs defined by various features (such as goal setting, tailored feedback provision, or reward and penalty schemes), and use a latent class approach to capture heterogeneity and detect segments of people that share similar preferences. The segments are subsequently profiled in terms of socio-demographic and psychographic characteristics. Overall, results show that there is considerable heterogeneity in tastes for different features of electricity-saving programs. The findings allow identifying individual characteristics that influence the likelihood to adopt different forms of programs. On this basis, electric utilities may design electricity-saving programs that better satisfy customer needs and effectively tailor marketing and communication programs to the specific target groups.

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Section: Adapted From Thøgersen (2006) Personal Norms Zmentioning

confidence: 85%

Section: Combining Goal Setting With Reward-based Strategiesmentioning

confidence: 99%

See 1 more Smart Citation

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Hille

Weber

Brosch

2019

Journal of Cleaner Production

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“…Investments are available for installation or modernization of cog eneration equipment. To receive support, equipment has to provide accomplishment of efficiency criteria and use of useful heat [12], [13].…”

Section: Support For Electricity Production In Cogenerationmentioning

confidence: 99%

“…With a decrease in the load on the heating system, it will be important to decide how to create the heating supply system. Currently, there are 3 alternative solutions which are topical in Scandinavian countries, but in the Baltic countries there still are four solution groups [13]:…”

Section: Environmental and Climate Technologiesmentioning

confidence: 99%

Mandatory Procurement Lessons. Phenomena of External Initiator Factor

Blumberga

2019

Environmental and Climate Technologies

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Financial support is needed in order to implement renewable resources in countries energy sector in the shortest time period. Among the most important supports for European Union Member states are feed-in tariff and feed-in tariff premiums. This research analyses one country’s experience in applying subsidies of the electricity tariff that has caused public protests after 20 years. There are many reasons for this which are analysed in the paper. One of the most important reasons of high subsidies of energy tariffs – coincident mandatory procurement implementation of application of fossil fuel (imported natural gas) for cogeneration units, which has to be classified as external mover (initiator) factor. Energy sector’s potential development scenarios with or without support for renewable energy resources are being analysed in the paper.

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Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

Mahmoodi

Hille

Patel

et al. 2020

J of Consumer Behaviour

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Incentives, both rewards and punishments, are effective instruments that have been embedded in electricity product designs to reduce electricity consumption. Reducing electricity consumption can considerably contribute to climate change mitigation. To better understand consumer preferences for incentive‐based electricity products, a choice experiment using choice‐based conjoint analysis was conducted among a representative sample of Swiss electricity consumers. Based on stated preferences for different product attributes, four consumer segments were identified. While two segments (49.6%) stated preference for incentive‐based products, two other segments were less accepting of incentive components (particularly of penalties). We further explain the segments' preferences using psychographic characteristics, combining measures from psychology and behavioral economics. Precisely, environmental values and emotions, energy saving intentions and motives, perceived product attractiveness, as well as loss and risk aversion, and comparative optimism bias best described the segments. We align our findings with previous segmentation studies and argue for a stronger integration of behavioral economics in the environmental discourse. We further discuss the usefulness of consumer segmentation to develop tailored strategies that effectively target consumers' preferences and needs.

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Recent experiences with tariffs for saving electricity in households

Cited by 25 publications

References 30 publications

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Consumers’ preferences for electricity-saving programs: Evidence from a choice-based conjoint study

Mandatory Procurement Lessons. Phenomena of External Initiator Factor

Using rewards and penalties to promote sustainability: Who chooses incentive‐based electricity products and why?

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