The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan
This study aimed to investigate the change of consumer behavior in electric power consumption after the application of dynamic pricing via real-time feedback. Afield experiment of dynamic pricing was carried out on Nushima Island, which is located in Hyogo Prefecture in central Japan. The panel data...
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| Format: | Article |
| Language: | English |
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MDPI AG
2018-08-01
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| Series: | Energies |
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| Online Access: | http://www.mdpi.com/1996-1073/11/8/2175 |
| _version_ | 1798034955596464128 |
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| author | Thanh Tam Ho Sarana Shinkuma Koji Shimada |
| author_facet | Thanh Tam Ho Sarana Shinkuma Koji Shimada |
| author_sort | Thanh Tam Ho |
| collection | DOAJ |
| description | This study aimed to investigate the change of consumer behavior in electric power consumption after the application of dynamic pricing via real-time feedback. Afield experiment of dynamic pricing was carried out on Nushima Island, which is located in Hyogo Prefecture in central Japan. The panel data of hourly electric power consumption among 50 households (including 22 control households and 28 treated households) were collected from a baseline survey (14 days before the dynamic pricing experiment was conducted) and during the 14-day experimental period. Propensity score analysis with local linear matching was employed to analyze the average treatment effects of dynamic pricing on consumer behavior. The results report that dynamic pricing plays a crucial role in reducing consumers’ electric power consumption—by 9.6% compared to the pre-experimental period. |
| first_indexed | 2024-04-11T20:51:31Z |
| format | Article |
| id | doaj.art-f786ab452aa04772b14b08466dd5c1a6 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-04-11T20:51:31Z |
| publishDate | 2018-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-f786ab452aa04772b14b08466dd5c1a62022-12-22T04:03:50ZengMDPI AGEnergies1996-10732018-08-01118217510.3390/en11082175en11082175The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, JapanThanh Tam Ho0Sarana Shinkuma1Koji Shimada2Graduate School of Economics, Ritsumeikan University, 1-1-1 Noji-Higashi, Kusatsu, Shiga 525-8577, JapanFaculty of Economics, Ritsumeikan University, 1-1-1 Noji-Higashi, Kusatsu, Shiga 525-8577, JapanFaculty of Economics, Ritsumeikan University, 1-1-1 Noji-Higashi, Kusatsu, Shiga 525-8577, JapanThis study aimed to investigate the change of consumer behavior in electric power consumption after the application of dynamic pricing via real-time feedback. Afield experiment of dynamic pricing was carried out on Nushima Island, which is located in Hyogo Prefecture in central Japan. The panel data of hourly electric power consumption among 50 households (including 22 control households and 28 treated households) were collected from a baseline survey (14 days before the dynamic pricing experiment was conducted) and during the 14-day experimental period. Propensity score analysis with local linear matching was employed to analyze the average treatment effects of dynamic pricing on consumer behavior. The results report that dynamic pricing plays a crucial role in reducing consumers’ electric power consumption—by 9.6% compared to the pre-experimental period.http://www.mdpi.com/1996-1073/11/8/2175dynamic pricingdemand responsepropensity score analysislocal linear matching |
| spellingShingle | Thanh Tam Ho Sarana Shinkuma Koji Shimada The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan Energies dynamic pricing demand response propensity score analysis local linear matching |
| title | The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan |
| title_full | The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan |
| title_fullStr | The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan |
| title_full_unstemmed | The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan |
| title_short | The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan |
| title_sort | effects of dynamic pricing of electric power on consumer behavior a propensity score analysis for empirical study on nushima island japan |
| topic | dynamic pricing demand response propensity score analysis local linear matching |
| url | http://www.mdpi.com/1996-1073/11/8/2175 |
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