Preferences for dynamic electricity tariffs: A comparison of households in Germany and Japan

Miwa Nakai, Victor von Loessl and Heike Wetzel

Ecological Economics, 2024, vol. 223, issue C

Abstract: We evaluate a stated choice experiment on dynamic electricity tariffs based on two representative household surveys from Germany and Japan. Our results indicate significant differences between German and Japanese respondents’ preferences towards dynamic tariffs, with the latter generally being more open to dynamic pricing. Furthermore, our unique experimental design allows to disentangle preferences for inter- and intraday price changes, which are two essential tariff characteristics. In this respect, our results suggest that households need significant compensation in order to accept frequently changing price patterns. In contrast, they are mostly indifferent with respect to the number of price changes per day. Besides the implementation of an environmental treatment message, we additionally investigate tariff characteristics, which aim at overcoming household acceptance barriers. To this end, a restrictive use of households’ consumption data, cost caps, as well as highlighting the environmental benefits associated to dynamic tariffs present themselves as suitable tools to reduce households’ aversion to dynamic electricity tariffs.

Keywords: Dynamic electricity tariffs; Stated choice experiment; Household acceptance barriers; Tariff design (search for similar items in EconPapers)
JEL-codes: C35 D12 Q41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0921800924001368
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Preferences for dynamic electricity tariffs: A comparison of households in Germany and Japan (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:223:y:2024:i:c:s0921800924001368

DOI: 10.1016/j.ecolecon.2024.108239

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().