Conjoint analysis of Japanese households’ energy-saving behavior after the earthquake: The role of the preferences for renewable energy

Abstract

Energy savings among households is an important energy challenge in Japan. After the Great East Japan Earthquake in March 2011, electricity shortages became a worry because nuclear power plants ceased operations. The conditions that households require to save electricity are analyzed in the paper by a conjoint analysis. An annual electricity bill, CO2 emissions, a stable electricity supply, and energy sources that generate electricity are considered. The role of energy sources, especially renewable energy, in energy savings is focused. When renewable energy such as solar and wind power is used, households who prefer it might use less electricity as well. A random parameter logit model is used for estimation. The promotion of renewable energy and energy savings should be encouraged in Japan’s official energy policy. If electricity generated by renewable energy is provided, households that prefer renewable energy choose such an electricity and will reduce their electricity usage. As a result, the promotion of renewable energy and energy savings could be addressed simultaneously. The estimation results indicated that households would save more electricity if an annual electricity bill is reduced. In addition, they also would save more electricity if CO2 emissions are reduced and if a stable electricity supply is secured. If nuclear power is used for electricity generation, they do not use less electricity. If renewable energy is provided, they tend to use less electricity. Thus, renewable energy provides incentives for households to reduce electricity usage. It is possible to promote energy savings by utilizing consumers’ interest in renewable energy.