Economics at your fingertips  

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

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

Energy Policy, 2014, vol. 72, issue C, 164-174

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 τ past opinions. The resulting model offers a hypothetical, yet plausible explanation of 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)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs (2013) Downloads
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:

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-09-20
Handle: RePEc:eee:enepol:v:72:y:2014:i:c:p:164-174