Impact of social comparison on preferences for Demand Side Management in Poland

Abstract

The study investigates the preferences for Demand Side Management programs for electricity usage in Poland. Using stated preference data generated from a choice experiment with a large representative sample of the Polish population, we estimate willingness to accept changes in electricity consumption. We also explore the impact of social comparison of households’ energy use on the acceptance of Demand Side Management as a potential driver of preference heterogeneity with respect to electricity services.The results indicate that the majority of respondents are willing to accept new electricity contracts in exchange for financial compensation. Respondents seem to consider electricity consumption control during the peak evening hours to be the most onerous. Surprisingly, the social comparison of electricity usage had limited impact on respondents’ willingness to accept the attributes of the contracts. Including it in Demand Side Management programs requires reflection.From a policy perspective our results highlight the potential of Demand Side Management programs in Poland. The estimated values for consumers' willingness to accept changes could serve as a reference for designing Demand Side Management with a minimal impact on consumers’ comfort. The results suggest that providing consumers with normative feedback may not affect their choices with respect to electricity services.