Influence of Attitudes on Willingness to Choose Time-of-Use Electricity Tariffs in Germany. Evidence from Factor Analysis

Swantje Sundt
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Swantje Sundt: Department of Economics, Kiel University, 24098 Kiel, Germany

Energies, 2021, vol. 14, issue 17, 1-20

Abstract: Time-of-use (TOU) electricity tariffs are a demand side measure to ease balancing of demand and supply to cope with a rising share of renewables in a country’s electricity mix. In general, consumers require compensation for accepting these tariffs. This study analyzes how attitudes drive consumers’ willingness to choose a TOU tariff in Germany. To identify attitudinal profiles, I use an exploratory factor analysis on items capturing positive and negative attitudes towards TOU tariffs , climate change awareness , and belief in energy saving measures . I use these factors as predictors in an ordered logit specification to estimate consumers’ stated willingness to choose a TOU tariff. Three factors are significant: positive and negative attitudes towards TOU tariffs , and climate change awareness . These findings highlight that decision makers who aim at balancing demand and supply through the use of TOU tariffs should focus on informing consumers about the positive impacts of these tariffs on climate change mitigation, grid stability, and possible energy savings.

Keywords: time-of-use electricity tariff; factor analysis; preferences; willingness to adapt (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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