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Peak Load Habits for Sale?: Soft Load Control and Consumer Preferences on the Electricity Market
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).
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.
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).ORCID iD: 0000-0002-5187-4280
2021 (English)In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 42, no 1Article in journal (Refereed) Published
Abstract [en]

The main purpose of this paper is to estimate lost consumer values due to various restrictions on household electricity use involving behavior adaptation. To do this, we conduct a choice experiment where households choose between hypothetical electricity contracts including various restrictions on the use of high-power household appliances. In addition, we use a contingent valuation question related to complete blackouts to study a restriction on other types of electricity usage (heating, lighting, TV, etc.). The results indicate a significant difference between the value lost due to the soft control, and the blackouts. Furthermore, policies aiming at stimulating behavioral changes are costly and it is far from obvious that demand response requiring behavioral adaptation is more cost effective than supply response (i.e., increased production of electricity).

Place, publisher, year, edition, pages
International Association for Energy Economics , 2021. Vol. 42, no 1
Keywords [en]
Value of lost load, Choice experiment, Electricity contracts, Demand response
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-169937DOI: 10.5547/01956574.42.1.tbroISI: 000599807200010Scopus ID: 2-s2.0-85086500801OAI: oai:DiVA.org:umu-169937DiVA, id: diva2:1425820
Available from: 2020-04-22 Created: 2020-04-22 Last updated: 2023-09-05Bibliographically approved

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Broberg, ThomasBrännlund, Runar

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