Article
Economics
Jun-Jun Jia, Jin Guo, Chu Wei
Summary: The study found that residential electricity demand is price inelastic and electricity is an essential commodity for households in the short run. Additionally, there are significant urban-rural disparities and regional heterogeneity in short-run income elasticity. These estimated parameters can provide valuable references for policy-making at both nationwide and regional levels.
Article
Economics
Boqiang Lin, Penghu Zhu
Summary: The study shows that policy cognition can reduce electricity consumption by about 42.25%, with price cognitive bias being a crucial way to achieve this effect. Especially for residents with low incomes, low electricity consumption, and over 50 years old, this energy-saving effect is more significant.
Article
Green & Sustainable Science & Technology
Shuang Hu, Jiaxin He, Chenyao Yang
Summary: The study found that residential electricity consumption in China is growing rapidly, and the use of Increasing Block Tariffs is effective in reducing consumption, especially among high-income groups. The instrumental variable method proved to be effective in assessing the impact, providing a reliable means of evaluation.
SUSTAINABLE PRODUCTION AND CONSUMPTION
(2022)
Article
Economics
Jihyo Kim, Soomin Lee, Heesun Jang
Summary: This study analyzes a large-scale Time of Use (TOU) pricing experiment in South Korea. The results show that households effectively reduce peak demand in response to higher prices. However, the price responsiveness of the treatment groups decreased in the post-experimental period, resulting in increased intermediate consumption. This suggests a need to reexamine the price schedule under TOU pricing for social welfare.
Article
Economics
F. M. Andersen, P. A. Gunkel, H. K. Jacobsen, L. Kitzing
Summary: Household electricity consumption levels and timing are significantly influenced by household characteristics such as dwelling type, heating technology, use of electric vehicles, and the number and age of household members. Flat rate pricing in Denmark currently shows limited cross-subsidies between residential customer groups, indicating that introducing real-time pricing for Danish residential customers could improve economic efficiency without significant redistribution concerns.
Article
Green & Sustainable Science & Technology
Meng Shen, Jinglong Chen
Summary: This study constructs electricity price policy response model and residential peak-valley pricing (PVP) policy optimization model by simulating household electricity load profiles, and proposes methods to optimize PVP policy. The results show that the original PVP policy has limited effect in some provinces, while the optimized policy can reduce household electricity bills and peak electricity consumption.
JOURNAL OF CLEANER PRODUCTION
(2022)
Article
Economics
Boqiang Lin, Tianxu Lan
Summary: Based on the theory of planned behavior and the policy acceptance model, this study incorporated policy perception into a theoretical model of residential electricity-saving behavior. The factors influencing residential electricity-saving feedback after the implementation of the increasing-block electricity pricing policy were investigated through a questionnaire survey conducted on 3108 residents in four typical first-tier cities in China. The results revealed that perceived economic usefulness, perceived environmental usefulness, and perceived ease of use of the policy significantly and positively influenced residents' cutting and investing in electricity-saving feedback. Gender and city heterogeneity were also examined. Additionally, a comparison of questionnaire data from 2016 and 2022 showed an increase in residents' concerns about electricity information, attitudes towards electricity saving, and policy cognition in recent years. Policy recommendations were proposed to enhance residents' policy perception and promote energy-saving feedback under the increasing-block electricity pricing policy.
Article
Energy & Fuels
Aziz Saif, Shafi K. Khadem, Michael Conlon, Brian Norton
Summary: This paper presents a consumer-centric market model called Local Electricity Market (LEM) that extends the self-consumption method to collective self-consumption in local energy communities through peer-to-peer (P2P) transactions. A case study in an Irish smart energy community is conducted to explore the feasibility of residential energy storage (ES) under different retail pricing schemes and its impact on the network performance of the low-voltage distribution network (LVDN).
Article
Environmental Sciences
Yabin Da, Bin Zeng, Jing-Li Fan, Jiawei Hu, Lanlan Li
Summary: Existing studies have found that climate change has significant effects on residential electricity consumption, but the differences in responses to climate change between rural and urban residents, and the role of electricity pricing regimes in determining these responses, are still largely unknown. This study examines these issues using monthly data from Anhui province in China. The results suggest that, on average, rural residents are more sensitive to changes in temperature than urban residents, and households that adopt time of use pricing regimes are less responsive to temperatures compared to households with tiered pricing regimes. The findings also indicate that substantial increases in electricity demand are expected in the future due to climate change, with urban and rural residents in 2080 projected to experience an increase of 35.5% and 77.1% in electricity demand, respectively, compared to 2017.
Article
Economics
Xiaoling Ouyang, Yuchuan Yang, Kerui Du, Zhenyu Cheng
Summary: This paper investigates the relationship between electricity efficiency and residential electricity consumption and finds a rebound effect, where a portion of energy savings from efficiency improvement is offset by households' behavior adjustments. The study also reveals that residential income, population density, and temperature deviation play vital roles in electricity consumption, while household size significantly affects the magnitude of the rebound effect.
Article
Engineering, Electrical & Electronic
Zongzheng Zhao, Yixin Liu, Li Guo, Linquan Bai, Zhongguan Wang, Chengshan Wang
Summary: This paper proposes an uncertainty-aware distribution locational marginal pricing mechanism based on robust optimization for managing the uncertainty of small-scale distributed energy resources (DERs) and removing barriers to their participation in wholesale electricity markets. The mechanism provides transparent and comprehensive price signals for managing voltage, congestion, loss, and uncertainty, and allows DERs to participate in wholesale markets.
IEEE TRANSACTIONS ON SMART GRID
(2023)
Article
Green & Sustainable Science & Technology
Majid Hashemi
Summary: This study analyzes the response of residential electricity consumption and backup decisions of Nepalese households to improvements in electricity reliability. The findings indicate that improved reliability is positively correlated with the probability of owning electric appliances, and it is especially important for poorer households.
ENERGY FOR SUSTAINABLE DEVELOPMENT
(2022)
Article
Energy & Fuels
Salim Turdaliev
Summary: This study provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and households' propensity to buy major electrical appliances. The findings suggest that price-based energy policies may effectively shape household behavior by increasing the purchase of major electrical appliances.
Article
Green & Sustainable Science & Technology
A. Srivastava, S. Van Passel, P. Valkering, E. J. W. Laes
Summary: This paper conducted a discrete choice experiment among 167 households in the Delhi region in India to study the acceptability of demand response programs among upper-income households. Results showed a preference for time-of-use pricing and three rate slabs per day. Respondents prioritized reductions in power outages and minimizing expenses, and their ages and incomes further affected their valuation of reductions in power outages.
RENEWABLE & SUSTAINABLE ENERGY REVIEWS
(2021)
Article
Energy & Fuels
Walid Matar
Summary: This study examines the marginal welfare gain of adopting higher energy efficiency after another efficiency measure has already been installed. The findings suggest that investing in more stringent thermal insulation after already installing more efficient air conditioners reduce welfare, but other preexisting efficiency cases may lead to welfare gains. In western Saudi Arabia, variability in welfare between marginal investment decisions are low relative to those in other regions.
ENERGY SOURCES PART B-ECONOMICS PLANNING AND POLICY
(2021)
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.