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Household preferences for load restrictions: Is there an effect of pro-environmental framing?

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  • Broberg, Thomas
  • Daniel, Aemiro Melkamu
  • Persson, Lars

Abstract

In this paper, we investigate whether a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment and ask respondents to choose between their current electricity contract and hypothetical contracts featuring various load controls and a monetary compensation. Our results indicate that the framing makes respondents marginally less likely to prefer their current contracts. We find significant pro-environmental framing effect related to a few contract attributes, particularly the framing reduces respondents' willingness-to-accept compensation for the number of days with load control and for flexibility to choose appliances for load control. The results further show that the framing affects respondents who do not perform pro-environmental activities. Our finding suggests that a pro-environmental message, which is inexpensive to include in a proposed contract, may influence the preferences of people who are less engaged in pro-environmental activities.

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  • Broberg, Thomas & Daniel, Aemiro Melkamu & Persson, Lars, 2021. "Household preferences for load restrictions: Is there an effect of pro-environmental framing?," Energy Economics, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:eneeco:v:97:y:2021:i:c:s0140988321000931
    DOI: 10.1016/j.eneco.2021.105188
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    More about this item

    Keywords

    Choice experiment; Demand response; Electricity contract; Load management; Pro-environmental framing; Willingness to accept;
    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
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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