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  • 1.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Berg, Charlotte
    Samakovlis, Eva
    The economy-wide rebound effect from improved energy efficiency in Swedish industries–A general equilibrium analysis2015In: Energy Policy, ISSN 0301-4215, E-ISSN 1873-6777, Vol. 83, p. 26-37Article in journal (Refereed)
    Abstract [en]

    The objective of this paper is to analyse the rebound effect from increased efficiency in industrial energy use in Sweden. Energy efficiency improvements can have significant micro- and macroeconomic effects that hamper the positive effect on real energy savings. To assess the size of the overall rebound effect in the Swedish economy, we apply a computable general equilibrium model. The results show that the economy-wide rebound effect depends on a number of factors, e.g. the extent of the energy efficiency improvement, how the labour market is modelled as well as whether the increase in energy efficiency is combined with a cost or not. We find that the rebound effect following a five per cent increase in energy efficiency in the Swedish industry lies in the 40-70 per cent range. When energy efficiency is only improved in energy-intensive production, the rebound effect becomes even higher. These findings are in line with the results in the literature.

  • 2.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Brännlund, Runar
    Umeå University, Faculty of Social Sciences, Department of Economics.
    A new approach for analyzing multiple bounded WTP data - Certainty dependent payment card intervals.2007Report (Other academic)
  • 3.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Brännlund, Runar
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Kazukauskas, Andrius
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE).
    Persson, Lars
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Vesterberg, Mattias
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    An electricity market in transition: demand flexibility and preference heterogeneity2015Report (Other academic)
    Abstract [en]

    In a recent report to the Swedish Energy Markets Inspectorate (Broberg et al., 2014) consumer behavior and consumer flexibility concerning energy use were analyzed. Two main conclusions were drawn. First, electricity consumption follows a regular pattern over the day, week, and year, which to a large extent reflects household living patterns and climate variations over the year. Second, the average household needs a substantial economic compensation to voluntarily reschedule its electricity use away from peak demand hours. The required compensations were found to be far higher than the economic incentives households face today when exposed to real-time pricing. In addition, it was found that households are more flexible in the use of electricity for heating than in the use of electrical appliances. Finally, households were found to be more flexible during the morning peak hours than during the evening hours. These findings led to the overall conclusion that both the possibilities and incentives are such that we cannot expect any substantial change in energy use patterns from technical reforms that creates incentives for demand response in line with the current price variation on the wholesale market for electricity.

    In the above-mentioned report we also analyzed people’s attitudes towards information dissemination. We concluded that many households do not wish to have their electricity use scrutinized by experts and other households. We found that people, on average, required a compensation to allow such information sharing. Again, new technologies open for various demand response policies, although it does not necessarily imply substantially higher demand flexibility. New technologies need to be combined with consumer interest to be successful in a market economy.

    The overall objective of the current report is to further scrutinize consumer behavior and flexibility. The first part focuses on Swedish households’ choice of electricity supplier contracts. Specifically, we analyze what types of households choose a fixed price contract. 1 The choice of contract implicitly reveals a consumer’s flexibility since a fixed price contract works as an insurance against price variation. So, by studying what type of households chose a fixed price contract we are able to infer on which type of households are relatively inflexible. This part of the analysis is policy relevant since it touches on the question of what to expect from real-time pricing reforms. A central question is whether a household who uses relatively more electricity is more likely to have a fixed price contract. If this is the case, future access to real-time pricing and a greater price variation may not be a guarantee for a substantial increase in demand response as important consumers (from a policy perspective) are more likely to insure against such circumstances. From this perspective the market for price insurances (fixed price contracts) is a market for inflexibility.

    While the analysis above considers the effectiveness of future energy policies to promote demand response, it is also relevant to study the question of how the peak demand problem may develop over time. This question is explicitly addressed in the current report by studying how consumer behavior varies across income levels. The existing literature suggests that electricity consumption is positively related to income, although the income elasticity 2 is fairly small. However, almost all studies concerning income effects have studied aggregate electricity use on monthly or yearly basis. The present study departs from the existing literature by studying how daily household electricity use patterns vary across income levels. This approach is novel since it allows us to analyze how the peak load problem may develop in the future as a result of higher income levels, which is commonly expected.

    By studying the choice of electricity contracts and by estimating hourly income elasticities, the report approach demand flexibility in an indirect way. In the third analysis of the report we address these issues again, although with a somewhat more direct approach. The choice experiment part in Broberg et al. (2014), which focused on the economic incentives needed in order to change people’s energy consumption in a predefined way, is now deepened. The focus is on how socio-economic factors such as e.g. age, gender, education and income may explain preference heterogeneity among the Swedish population. Energy related factors such as living conditions and heating systems are also considered in the analysis. This analysis will inform us about what types of households are inclined to reschedule their energy use when given relatively small economic incentives, and what household’s that are relatively inflexible and thus require large compensations to change their behavior. We also study preference heterogeneity regarding information dissemination in purpose of anonymous peer comparisons.

    In the final part of the report we deepen our analysis of households’ demand for information about their own and others electricity use. Besides creating incentives for demand response, new technologies included in the smart grid concept also make it possible for policy makers to use tailored information to help consumers to use energy more efficiently. A number of studies highlight inefficiencies in the households’ use of energy (see e.g. Broberg and Kazukauskas, 2014). One highlighted reality is that people seem to pay little attention to energy issues. Of course, if people pay little attention to the price of electricity, the effectiveness of policy measures that work through the pricechannel is limited. In this part of the report we address four basic questions of great relevance for energy efficiency policies worldwide. The questions are (1) What knowledge do people have about the marginal cost of electricity use in terms of everyday electrical appliances? (2) Are the cost perceptions biased and in what direction? (3) Do inattention to energy issues play a significant role in this bias? (4) Do households want information that may help them de-bias their perceptions about energy costs and use?

    The report is structured such that section 2 gives a brief background on the issues analyzed in the report. The following sections correspond to the issues outlined in the introduction. Section 7 works to tie the analyses together and conclude our results

  • 4.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Brännlund, Runar
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Kazukauskas, Andrius
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Persson, Lars
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Vesterberg, Mattias
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    En elmarknad i förändring: är kundernas flexibilitet till salu eller ens verklig?2014Report (Other academic)
    Abstract [sv]

    I rapporten ”En elmarknad i förändring – Är kundernas flexibilitet till salu eller ens verklig?” tittar en forskargrupp vid Centrum för Miljö- och Naturresursekonomi (CERE) vid Handelshögskolan, Umeå Universitet på konsumenternas nuvarande och framtida roll på elmarknaden. Rapporten är beställd av Energimarknadsinspektionen.

  • 5.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE).
    Daniel, Aemiro Melkamu
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE).
    Persson, Lars
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE).
    Household preferences for load restrictions: is there an effect of pro-environmental framing?2019Report (Other academic)
    Abstract [en]

    In this paper we investigate if a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment (CE) and ask respondents to choose between their current electricity contract and hypothetical contracts featuring various load controls and a monetary compensation. Our results indicate that the pro-environmental framing have little impact on the respondents' choices. We observe a significant framing eeffect on choices and marginal willingness-to-accept (MWTA) for only a few contract attributes. The results further suggest that there is no significant framing effect among households that engage in different pro-environmental activities.

  • 6.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Egüez, Alejandro
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Blame it on the owner – Ownership and energy performance of multi-dwelling buildings2018In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 72, p. 108-119Article in journal (Refereed)
    Abstract [en]

    In this paper, we investigate the energy efficiency of multi-dwelling buildings in Sweden to find out whether the type of ownership matters. More specifically, we investigate whether rental apartment buildings are less energy efficient than cooperative apartment buildings and whether public ownership has a negative impact on energy efficiency. A conceptual framework is presented to illustrate that such differences could be explained by the split incentives problem and deviations from profit maximizing interests. The empirical analysis is based on a unique dataset that combines data from energy performance certificates with ownership data on residential units. The results indicate that cooperative apartment buildings are significantly more energy efficient than buildings with rental apartments. The results also indicate that publicly owned buildings have somewhat lower energy performance than privately owned ones.

  • 7.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE).
    Egüez, Alejandro
    Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Kazukauskas, Andrius
    Umeå University, Faculty of Social Sciences, Centre for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Vilnius University.
    Effects of energy performance certificates on investment: A quasi-natural experiment approach2019In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181Article in journal (Refereed)
    Abstract [en]

    Incomplete information may be one reason why some households do not invest in energy efficiency even though it would benefit them to do so. Energy performance certificates (EPCs) have been promoted to overcome such information shortages. In this paper, we investigate whether EPCs together with mandatory home energy audits make households more likely to invest in energy efficiency. Our study takes advantage of the mandatory nature of the EPCs to avoid the potential selection bias problem that typically applies to studies using voluntary energy audits as the treatment. Our treatment group consists of single-household houses in Sweden sold from 2008, i.e., when EPCs became legally required in connection with sales of residential buildings, to 2015; while the control group consists of houses sold between 2002 and 2008, i.e., without an EPC. The results show that there is no statistically significant treatment effect for most of the measures that a household can take to improve the energy performance of their house. The significant treatment effect that we do find concerns a few heating system-related measures.

  • 8.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Kazukauskas, Andrius
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Inefficiencies in Residential Use of Energy: A Critical Overview of Literature and Energy Efficiency Policies in the EU2015In: International Review of Environmental and Resource Economics, ISSN 1932-1465, E-ISSN 1932-1473, Vol. 8, no 2, p. 225-279Article in journal (Refereed)
    Abstract [en]

    A rather large literature argues that firms and households do not always improve energy efficiency by investing in new technology even if it would be cost-effective to do so. In this paper, we review the theoretical and empirical literature on the so-called energy efficiency gap and provide a rationale for policymakers to act to improve energy efficiency. By eliminating market failures, welfare can be improved in a broad sense, including both environmental quality and material welfare. We also discuss social 'nudges' as examples of policy instruments that do not directly target any market failure in energy markets but that still may have a significant impact on energy use. Although we acknowledge the existence of the energy efficiency gap, we argue that the gap in general is overestimated as parts of it can be explained by heterogeneity in preferences and thus explained by rational choices.

  • 9.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Persson, Lars
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Is our everyday comfort for sale?: Preferences for demand management on the electricity market2015Report (Other academic)
    Abstract [en]

    In a European perspective, the electricity markets have been experiencing major changes via deregulation, new technologies and changes in the production mix. Together with the daily and seasonal peak hours on the demand side, the changing markets put pressure on increased flexibility to handle and sustain balance in the grid systems. This paper focuses on the demand side and analyzes preferences related to demand management of Swedish households energy use. Preferences are analyzed within the framework of choice experiments and people are faced with hypothetical electricity contracts. The respondents reveal their preferences for attributes related to external control of heating, household electricity and information dissemination (integrity). The results show that people put a substantial value on not being controlled, illustrated by compensations up to thousands of SEK for accepting a contract characterized by external control of energy use in various dimensions. In addition, the results show that household composition, age, gender and income play a role for the perceived discomfort from the external control and information dissemination. 

  • 10.
    Broberg, Thomas
    et al.
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Persson, Lars
    Umeå University, Faculty of Social Sciences, Department of Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    Is our everyday comfort for sale?: preferences for demand management on the electricity market2016In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 54, p. 24-32Article in journal (Refereed)
    Abstract [en]

    In a European perspective, the electricity markets have been experiencing major changes via deregulation, new technologies and changes in the production mix. Together with the daily and seasonal peak hours on the demand side, the changing markets put pressure on increased flexibility to handle and sustain balance in the grid systems. This paper focuses on the demand side and analyzes preferences related to demand management of Swedish households' energy use. In a web-based choice experiment respondents were faced with three hypothetical electricity contracts. The choices of preferred contracts revealed preferences for attributes related to external control of heating, household electricity and information dissemination (integrity). The results show that people put a substantial value on not being controlled, illustrated by compensations up to thousands of SEK for accepting a contract characterized by external control of energy use in various dimensions. In addition, the results show that household composition, age, gender and income play a role for the perceived discomfort from the external control and information dissemination. 

  • 11.
    Kazukauskas, Andrius
    et al.
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Broberg, Thomas
    Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
    Jaraite, Jurate
    Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
    The peer comparison in real time: a field experiment of water and electricity consumption2017Report (Other academic)
    Abstract [en]

    A large body of literature shows that the provision of social comparisons can cause households to reduce residential energy and water use. In this paper, we carry out a field experiment that contributes to this literature in two important ways. First, we study a social comparison treatment that is continuous and communicated via pre-installed in-home displays, which are salient and updated in real time. Second, we estimate the effects of provision of social comparisons on two distinguished resources – electricity and water – in the same experimental setting. We find that, on average, our social comparison reduces daily residential energy consumption by 6.7 percent but has no effect on overall residential water use. The electricity savings are impersistent and occur in the evening hours, which only slightly overlap with peak hours. We argue that electricity conservation due to social comparisons is driven by short-run changes in households’ electricity saving behavior

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