TOP ＞ ディスカッションペーパー ＞ No.19 Impact of dynamic pricing strategy of electricity on residential energy consumption decisions in China: Empirical evidence from a household survey
No.19 Impact of dynamic pricing strategy of electricity on residential energy consumption decisions in China: Empirical evidence from a household survey
By facing the growing demand of residential electricity consumption caused by the rapid growth of urbanization in China, the residential electricity pricing mechanism problem has existed in a long period including unreasonable price structure and serious cross subsidization. Simultaneously, expansion of the demand for electricity caused by the growing industrialization aggravate the status of electricity shortage. In order to deal with the issue of cross subsidies and pressure on energy supply, several dynamic pricing systems of electricity, including the Tiered Electricity Pricing system (TEP) and Time-of-use (TOU) program, was introduced in residential electricity consumption area. In this study, based on the data of 3,653 households from the Chinese General Social Survey of 2015, impact of implementation of TEP mechanism, and the TOU program on energy consumption decisions of households are analyzed by Probit model. Last, the energy consumption determinants of households are estimated. Furthermore, we discussed on whether such impact of dynamic pricing strategies of electricity on energy consumption differ by registered locations of households.
According to estimation results, energy consumption behaviors of residents are significantly differed by registered locations of households. Residents located in rural area are more likely to consume energy source that is cheaper but with higher health risk and potential of releasing carbon dioxide emissions. Moreover, we conclude that the adoption of TEP system may lead to increase in carbon dioxide emissions at household level caused by substitution of nature gas by coal gas consumption, while the TOU program caused the exact opposite effects.
Keywords：rural households, energy consumption, consumer consumption behavior, tiered electricity pricing, Time-of-use pricing
このDPはJournal of Environmental Economics and Policy 誌に掲載されました。