Increasing Block Rate Electricity Pricing and Propensity to Purchase Electric Appliances: Evidence from a Natural Experiment

Salim Turdaliev

No 2021/27, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: This paper provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electric appliances. I use variation from a natural experiment in Russia that introduced IBR pricing for residential electricity in a number of experimental regions in 2013. The study employs household-level panel data which records, among others, whether the household has purchased any major electric appliances during the last 3 months. Using difference-in-differences specification I show that in the regions with IBR pricing the purchase of major electric appliances has increased by more than 25 percent (2 percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behavior of households.

Keywords: appliances; increasing-block-rate tariff; electricity prices; energy efficiency gap (search for similar items in EconPapers)
JEL-codes: D1 D9 Q3 Q4 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2021-07, Revised 2021-07
New Economics Papers: this item is included in nep-cis, nep-ene, nep-reg and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2021_27

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