Abstract
In this paper, we investigate whether a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment and ask respondents to choose between their current electricity contract and hypothetical contracts featuring various load controls and a monetary compensation. Our results indicate that the framing makes respondents marginally less likely to prefer their current contracts. We find significant pro-environmental framing effect related to a few contract attributes, particularly the framing reduces respondents' willingness-to-accept compensation for the number of days with load control and for flexibility to choose appliances for load control. The results further show that the framing affects respondents who do not perform pro-environmental activities. Our finding suggests that a pro-environmental message, which is inexpensive to include in a proposed contract, may influence the preferences of people who are less engaged in pro-environmental activities.
Highlights
Electrical power generating capacity based on weather-dependent primary energy sources, such as wind and solar, is being installed world-wide to meet total energy demand and mitigate emissions of greenhouse gases
Our result shows that the choice of the status quo alternative declines with an increase in number of attributes on which levels the hypothetical alternatives are different
In this paper we used a split-sample stated choice experiment (CE) survey to test for the effect of pro-environmental framing on preferences and WTA of households facing restrictions in their electricity use
Summary
Electrical power generating capacity based on weather-dependent primary energy sources, such as wind and solar, is being installed world-wide to meet total energy demand and mitigate emissions of greenhouse gases. A higher share of intermittent power generation raises concerns over to what degree the installed capacity can adjust to satisfy real-time demand as conventionally done. To obtain a safe and secure supply of electricity in the face of increasing penetration of intermittent production capacity, more flexible resources on the demand side may have to be utilized. Part of these flexible resources are to be found in the residential sector where the contribution to hourly demand fluctuations is significant. There is a potential for different market actors and policy makers to develop services and instruments that facilitate demand flexibility
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