Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs

Anna Kowalska-Pyzalska, Katarzyna Maciejowska (), Katarzyna Sznajd-Weron, Karol Suszczynski and Rafał Weron

No HSC/13/10, HSC Research Reports from Hugo Steinhaus Center, Wroclaw University of Science and Technology

Abstract: Using an agent-based modeling approach we study the temporal dynamics of consumer opinions regarding switching to dynamic electricity tariffs and the actual decisions to switch. We assume that the decision to switch is based on the unanimity of $\tau$ past opinions. The resulting model explains why there is such a big discrepancy between consumer opinions, as measured by market surveys, and the actual participation in pilot programs and the adoption of dynamic tariffs. We argue that due to the high indifference level in today's retail electricity markets, customer opinions are very unstable and change frequently. The conducted simulation study shows that reducing the indifference level can result in narrowing the intention-behavior gap. A similar effect can be achieved by decreasing the decision time that a consumer takes to make a decision.

Keywords: Dynamic pricing; Demand response; Consumer decisions; Intention-behavior gap; Innovation diffusion; Agent-based model (search for similar items in EconPapers)
JEL-codes: C63 O33 Q48 Q55 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2013-11-04
New Economics Papers: this item is included in nep-cmp and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://www.im.pwr.wroc.pl/~hugo/RePEc/wuu/wpaper/HSC_13_10.pdf Original version, 2013; Final version published in Energy Policy 72, 164-174 (2014; doi:10.1016/j.enpol.2014.04.021) (application/pdf)
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Journal Article: Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs (2014)
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