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Impact of social comparison on DSM in Poland

Bernadeta Gołębiowska (), Anna Bartczak () and Wiktor Budzinski ()
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Bernadeta Gołębiowska: Faculty of Economic Sciences, University of Warsaw

No 2019-10, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Poland’s energy strategy prioritizes long-term energy security, energy efficiency, reducing greenhouse gas emissions. The country’s progress toward sustainable development requires in-depth analyses of possible solutions. In our study we investigate consumers’ preferences for Demand Side Management programs for electricity usage in Poland. We apply a discrete Choice Experiment framework for various electricity contracts implying the external control of electricity usage. The main objective of the study is to investigate the value of potential disutility of Polish households from the energy management. Additionally, we elaborate on the effect of social comparison between households’ electricity use on the acceptance of new electricity contracts. The results suggest that people require substantial compensations to accept the external control of electricity in extreme cases and in weekdays during certain hours. Turning to the social comparison, we were expecting that people with a higher electricity usage per person in a household will require lower compensations, however we observe the opposite result. The respondents who were informed that they use more electricity than an average person in his administrative district seem to feel higher discomfort from the external electricity control. This suggest that the effect of social comparison might be overbalanced by the differences in perceived utility from electricity usage.

Keywords: choice experiment; demand side management; electricity, social comparison, willingness to accept (search for similar items in EconPapers)
JEL-codes: C25 D19 D91 Q41 Q48 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-tra
Date: 2019
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https://www.wne.uw.edu.pl/index.php/download_file/4919/ First version, 2019 (application/pdf)

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