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Preferences for demand side management—a review of choice experiment studies

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  • Bernadeta Gołębiowska

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

This review of choice experiment (CE) studies deals with the valuation of electricity supply attributes in the residential sector. We consider the willingness to pay and the willingness to accept changes in the electricity supply. The results could be used to determine consumers’ preferences for demand-side management (DSM) programs and could serve as a reference for formulating policies. DSM is an option for constructing a low-carbon electricity system, improving energy efficiency, and achieving the sustainable development of an economy. The results from CEs justify investment in new solutions. The research shows that consumers are open to DSM, but they prefer simple programs to complex ones. Decision-makers could introduce DSM programs that enable power outages and provide compensation for households. The societal advantages of DSM are not obvious to consumers, so the implementation of DSM requires communication and more research on peoples’ preferences.

Suggested Citation

  • Bernadeta Gołębiowska, 2020. "Preferences for demand side management—a review of choice experiment studies," Working Papers 2020-05, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2020-05
    as

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    File URL: https://www.wne.uw.edu.pl/index.php/download_file/5440/
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    More about this item

    Keywords

    choice experiments; demand-side management; energy; households; review;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D19 - Microeconomics - - Household Behavior - - - Other
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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