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The effect of demand response on purchase intention of distributed generation: Evidence from Japan

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  • Nakada, Tatsuhiro
  • Shin, Kongjoo
  • Managi, Shunsuke

Abstract

Participation in demand response (DR) may affect a consumer's electric consumption pattern through consumption load curtailment, a shift in the consumption timing or increasing the utilization of distributed generation (DG). This paper attempts to provide empirical evidence of DR's effect on DG adoption by household consumers. By using the original Internet survey data of 5442 household respondents in Japan conducted in January 2015, we focus on the effect of the time-of-use (TOU) tariff on the purchasing intention of photovoltaic systems (PV). The empirical results show the following: 1) current TOU plan users have stronger PV purchase intentions than the other plan users, 2) respondents who are familiar with the DR program have relatively higher purchase intentions compared with their counterparts, and 3) when the respondents are requested to assume participation in the virtual TOU plan designed for the survey, which resembles plans currently available through major companies, 1.2% of the households have decided to purchase PV. In addition, we provide calculations of TOU's impacts on the official PV adoption and emissions reduction targets, and discuss policy recommendations to increase recognitions and participations in TOU programs.

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  • Nakada, Tatsuhiro & Shin, Kongjoo & Managi, Shunsuke, 2016. "The effect of demand response on purchase intention of distributed generation: Evidence from Japan," Energy Policy, Elsevier, vol. 94(C), pages 307-316.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:307-316
    DOI: 10.1016/j.enpol.2016.04.026
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    4. Anatoly P. Dzyuba & Irina A. Solovyeva & Aleksandr V. Semikolenov, 2022. "Prospects of introducing microgrids in Russian industry," Journal of New Economy, Ural State University of Economics, vol. 23(2), pages 80-101, July.
    5. Clastres, Cédric & Khalfallah, Haikel, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Energy Economics, Elsevier, vol. 98(C).
    6. David Ribó-Pérez & Luis Larrosa-López & David Pecondón-Tricas & Manuel Alcázar-Ortega, 2021. "A Critical Review of Demand Response Products as Resource for Ancillary Services: International Experience and Policy Recommendations," Energies, MDPI, vol. 14(4), pages 1-25, February.
    7. Cédric Clastres & Haikel Khalfallah, 2020. "Retailers' strategies facing demand response and markets interactions," Working Papers hal-03167543, HAL.
    8. Anatolyy Dzyuba & Irina Solovyeva & Aleksandr Semikolenov, 2023. "Raising the Resilience of Industrial Manufacturers through Implementing Natural Gas-Fired Distributed Energy Resource Systems with Demand Response," Sustainability, MDPI, vol. 15(10), pages 1-24, May.
    9. Yamaguchi, Yohei & Chen, Chien-fei & Shimoda, Yoshiyuki & Yagita, Yoshie & Iwafune, Yumiko & Ishii, Hideo & Hayashi, Yasuhiro, 2020. "An integrated approach of estimating demand response flexibility of domestic laundry appliances based on household heterogeneity and activities," Energy Policy, Elsevier, vol. 142(C).

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