Examining Preference for Energy-Related Information through a Choice Experiment

Abstract

Many studies have shown that providing information on energy consumption to a household is effective, to some extent, in encouraging its energy conservation behavior. These studies provided information free of charge. However, depending on the type of information, a household must bear costs, such as installing the necessary equipment to obtain the information. Are people willing to pay for the information? In this study, a questionnaire survey was conducted to examine willingness to pay (WTP) for energy-related information using a choice experiment. The data were analyzed using conditional logit and latent class models. Positive WTP was estimated for information on the total energy consumption amount for the entire house, detailed electricity usage amount for each major home appliance, electricity rates by time zone, and power source composition of electricity. No significant positive results were obtained for comparison with the other households, as the class that accounted for about 40% of the analyzed sample had negative WTP for this information. When electricity companies provide comparative information, it is better to carefully consider how and to whom they provide it. The results of the latent class model show that preferences vary among classes. Although some preference variations exist, some households have a positive WTP for information on energy consumption.