Is cognition of residential tiered pricing policy effective in reducing electricity consumption in China?

Hongyang Lin, Huanyu Jia, Yingjin Ye, Yu Shen and Boqiang Lin ()

Utilities Policy, 2024, vol. 90, issue C

Abstract: China's residential tiered electricity pricing has been implemented for over a decade without a timely update. Past researches reveal the significant energy-saving effect of public policy cognition. This paper traces the relationship leveraging data from two surveys conducted in 2019 and 2023. We find that residents with some policy knowledge rose by one-third. However, policy cognition does not appear to lead to usage reductions. One crucial explanation is that changes in payment modes lower the salience of electricity bills, resulting in pronounced price misperceptions. This paper documents the role of adequate information feedback in enhancing the nonlinear tariff effect.

Keywords: Electricity policy; Nonlinear pricing policy; Information feedback (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:90:y:2024:i:c:s0957178724001012

DOI: 10.1016/j.jup.2024.101808

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