Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Electricity Demand and Dynamic Pricing Location: B127 Session Chair: Baptiste Rigaux, Gent Universiteit | |
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Beyond the price tag: Revealed preferences for dynamic electricity tariffs in Germany 1: University of Cologne, Germany; 2: EWI Institute of Energy Economics at the University of Cologne Dynamic electricity tariffs may enhance welfare, especially in electricity markets with increasing shares of variable renewable energy sources. However, previous surveys and experiments suggest that consumers may be reluctant to adopt dynamic tariffs due to complexity and risk aversion. This article examines real-world consumer choices between a dynamic tariff, which features a fixed price during the first month and fluctuates with wholesale prices thereafter, and a fixed tariff, with a 12-month price guarantee. We exploit variations in time, space, and consumer size to estimate the effect of the first-month tariff cost difference on choice probabilities. We find that consumers without electric heating are willing to pay a 19--40\% premium for a fixed tariff during the first month, and consumers with electric heating tend to prefer fixed tariffs regardless of the premium. We discuss the role of transparency and risk management in enhancing the adoption of dynamic tariffs. | |