IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v139y2020ics0301421520300951.html
   My bibliography  Save this article

Policy cognition is more effective than step tariff in promoting electricity saving behaviour of residents

Author

Listed:
  • Wang, Zhaohua
  • Sun, Yefei
  • Wang, Bo

Abstract

As a demand response plan, the step tariff policy for electricity has been fully implemented for several years in China. However, it is not clear whether the step tariff policy for electricity is effective. Therefore, we analysed and compared the effectiveness of step tariff policy from two aspects: step tariff and policy cognition. Specifically, combining macro-scale statistical data and microscopic research data, we constructed a regression discontinuity design and binary response model. First, we tested the correction effect of the step tariff to residential electricity consumption behaviour. Further, combined with cognitive behavioural theory, we analysed the role of policy cognition in the occurrence of electricity saving behaviour. Finally, based on the cognitive evaluation theory, the impact of residents’ heterogeneity on their cognitive differences was identified. The specific conclusions are as follows: (1) The step tariff based on the Ramsay strategy cannot effectively correct electricity consumption behaviours as expected. (2) Compared with the step tariff, construction of correct policy cognition has a more significant effect on changing the customary behaviour of electricity consumption. (3) Policy cognition of residents is heterogeneous, and groups with weak policy cognition are accurately identified.

Suggested Citation

  • Wang, Zhaohua & Sun, Yefei & Wang, Bo, 2020. "Policy cognition is more effective than step tariff in promoting electricity saving behaviour of residents," Energy Policy, Elsevier, vol. 139(C).
  • Handle: RePEc:eee:enepol:v:139:y:2020:i:c:s0301421520300951
    DOI: 10.1016/j.enpol.2020.111338
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520300951
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2020.111338?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alberini, Anna & Gans, Will & Velez-Lopez, Daniel, 2011. "Residential Consumption of Gas and Electricity in the U.S.: The Role of Prices and Income," Sustainable Development Papers 99637, Fondazione Eni Enrico Mattei (FEEM).
    2. Sun, Chuanwang & Lin, Boqiang, 2013. "Reforming residential electricity tariff in China: Block tariffs pricing approach," Energy Policy, Elsevier, vol. 60(C), pages 741-752.
    3. Sun, Chuanwang, 2015. "An empirical case study about the reform of tiered pricing for household electricity in China," Applied Energy, Elsevier, vol. 160(C), pages 383-389.
    4. repec:ebl:ecbull:v:9:y:2007:i:4:p:1-7 is not listed on IDEAS
    5. Murata, Akinobu & Kondou, Yasuhiko & Hailin, Mu & Weisheng, Zhou, 2008. "Electricity demand in the Chinese urban household-sector," Applied Energy, Elsevier, vol. 85(12), pages 1113-1125, December.
    6. Mirrlees, J. A., 1976. "Optimal tax theory : A synthesis," Journal of Public Economics, Elsevier, vol. 6(4), pages 327-358, November.
    7. Nataraj, Shanthi & Hanemann, W. Michael, 2008. "Does Marginal Price Matter? A Regression Discontinuity Approach to Estimating Water Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2jc295gr, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Siano, Pierluigi, 2014. "Demand response and smart grids—A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 461-478.
    9. Julie A. Hewitt & W. Michael Hanemann, 1995. "A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing," Land Economics, University of Wisconsin Press, vol. 71(2), pages 173-192.
    10. Alberini, Anna & Gans, Will & Velez-Lopez, Daniel, 2011. "Residential consumption of gas and electricity in the U.S.: The role of prices and income," Energy Economics, Elsevier, vol. 33(5), pages 870-881, September.
    11. Diego Angel-Urdinola & Quentin Wodon, 2007. "Do Utility Subsidies Reach the Poor? Framework and Evidence for Cape Verde, Sao Tome, and Rwanda," Economics Bulletin, AccessEcon, vol. 9(4), pages 1-7.
    12. Du, Gang & Lin, Wei & Sun, Chuanwang & Zhang, Dingzhong, 2015. "Residential electricity consumption after the reform of tiered pricing for household electricity in China," Applied Energy, Elsevier, vol. 157(C), pages 276-283.
    13. Wichman, Casey J., 2014. "Perceived price in residential water demand: Evidence from a natural experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 308-323.
    14. Olmstead, Sheila M., 2009. "Reduced-Form Versus Structural Models of Water Demand Under Nonlinear Prices," Journal of Business & Economic Statistics, American Statistical Association, vol. 27, pages 84-94.
    15. Zhang, Zibin & Cai, Wenxin & Feng, Xiangzhao, 2017. "How do urban households in China respond to increasing block pricing in electricity? Evidence from a fuzzy regression discontinuity approach," Energy Policy, Elsevier, vol. 105(C), pages 161-172.
    16. Wu, Ya & Zhang, Li, 2017. "Evaluation of energy saving effects of tiered electricity pricing and investigation of the energy saving willingness of residents," Energy Policy, Elsevier, vol. 109(C), pages 208-217.
    17. Zhou, Kaile & Yang, Shanlin, 2016. "Understanding household energy consumption behavior: The contribution of energy big data analytics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 810-819.
    18. Nataraj, Shanthi & Hanemann, W. Michael, 2011. "Does marginal price matter? A regression discontinuity approach to estimating water demand," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 198-212, March.
    19. Khanna, Nina Zheng & Guo, Jin & Zheng, Xinye, 2016. "Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey," Energy Policy, Elsevier, vol. 95(C), pages 113-125.
    20. Wang, Zhaohua & Zhang, Bin & Zhang, Yixiang, 2012. "Determinants of public acceptance of tiered electricity price reform in China: Evidence from four urban cities," Applied Energy, Elsevier, vol. 91(1), pages 235-244.
    21. Zografakis, Nikolaos & Sifaki, Elli & Pagalou, Maria & Nikitaki, Georgia & Psarakis, Vasilios & Tsagarakis, Konstantinos P., 2010. "Assessment of public acceptance and willingness to pay for renewable energy sources in Crete," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1088-1095, April.
    22. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
    23. Ek, Kristina & Söderholm, Patrik, 2010. "The devil is in the details: Household electricity saving behavior and the role of information," Energy Policy, Elsevier, vol. 38(3), pages 1578-1587, March.
    24. Fiorio, Carlo V. & Florio, Massimo, 2011. "«Would you say that the price you pay for electricity is fair?» Consumers' satisfaction and utility reforms in the EU15," Energy Economics, Elsevier, vol. 33(2), pages 178-187, March.
    25. Hung, Ming-Feng & Chie, Bin-Tzong, 2017. "The long-run performance of increasing-block pricing in Taiwan's residential electricity sector," Energy Policy, Elsevier, vol. 109(C), pages 782-793.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nie, Yan & Zhang, Guoxing & Zhong, Luhao & Su, Bin & Xi, Xi, 2024. "Urban‒rural disparities in household energy and electricity consumption under the influence of electricity price reform policies," Energy Policy, Elsevier, vol. 184(C).
    2. Zhu, Penghu & Lin, Boqiang, 2022. "Do the elderly consume more energy? Evidence from the retirement policy in urban China," Energy Policy, Elsevier, vol. 165(C).
    3. Qi Huang & Aihua Jiang & Yu Zeng & Jianan Xu, 2022. "Community Flexible Load Dispatching Model Based on Herd Mentality," Energies, MDPI, vol. 15(13), pages 1-18, June.
    4. Lin, Boqiang & Lan, Tianxu, 2023. "Progress of increasing-block electricity pricing policy implementation in China's first-tier cities and the impact of resident policy perception," Energy Policy, Elsevier, vol. 177(C).
    5. Satish Suresh Tanavade & Ganesh Nagraj Patil & C. V. Sudhir & A. M. Saravanan, 2023. "Strategic Energy Management and Carbon Footprint Reduction in University Campuses: A Comprehensive Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 15-27, November.
    6. Lin, Boqiang & Zhu, Penghu, 2021. "Measurement of the direct rebound effect of residential electricity consumption: An empirical study based on the China family panel studies," Applied Energy, Elsevier, vol. 301(C).
    7. Lin, Boqiang & Zhu, Penghu, 2021. "Has increasing block pricing policy been perceived in China? Evidence from residential electricity use," Energy Economics, Elsevier, vol. 94(C).
    8. Wang, Yao & Lin, Boqiang & Li, Minyang, 2021. "Is household electricity saving a virtuous circle? A case study of the first-tier cities in China," Applied Energy, Elsevier, vol. 285(C).
    9. Ranran Shi & Ling Hou & Binghui Jia & Yaya Jin & Weiwei Zheng & Xiangdong Wang & Xianhui Hou, 2022. "Effect of Policy Cognition on the Intention of Villagers’ Withdrawal from Rural Homesteads," Land, MDPI, vol. 11(8), pages 1-17, August.
    10. Wang, Xiaolei & Wei, Chunxin & Wang, Yanhua, 2022. "Does the current tiered electricity pricing structure still restrain electricity consumption in China's residential sector?," Energy Policy, Elsevier, vol. 165(C).
    11. He, Ke & Ye, Lihong & Li, Fanlue & Chang, Huayi & Wang, Anbang & Luo, Sixuan & Zhang, Junbiao, 2022. "Using cognition and risk to explain the intention-behavior gap on bioenergy production: Based on machine learning logistic regression method," Energy Economics, Elsevier, vol. 108(C).
    12. Song, Yan & Zhang, Lu & Zhang, Ming, 2022. "Research on the impact of public climate policy cognition on low-carbon travel based on SOR theory—Evidence from China," Energy, Elsevier, vol. 261(PA).
    13. Ganesh Nagraj Patil & Satish Suresh Tanavade, 2024. "Eco-Friendly Energy Efficient Classrooms and Sustainable Campus Strategies: A Case Study on Energy Management and Carbon Footprint Reduction," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 188-197, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Chen, Xing, 2018. "Is the implementation of the Increasing Block Electricity Prices policy really effective?--- Evidence based on the analysis of synthetic control method," Energy, Elsevier, vol. 163(C), pages 734-750.
    2. Ayertey, Winfred & Sharifi, Ayyoob & Yoshida, Yuichiro, 2024. "The impact of increase in block pricing on electricity demand responsiveness: Evidence from Ghana," Energy, Elsevier, vol. 288(C).
    3. Li, Lanlan & Luo, Xuan & Zhou, Kaile & Xu, Tingting, 2018. "Evaluation of increasing block pricing for households' natural gas: A case study of Beijing, China," Energy, Elsevier, vol. 157(C), pages 162-172.
    4. Zhang, Zibin & Cai, Wenxin & Feng, Xiangzhao, 2017. "How do urban households in China respond to increasing block pricing in electricity? Evidence from a fuzzy regression discontinuity approach," Energy Policy, Elsevier, vol. 105(C), pages 161-172.
    5. Hung, Ming-Feng & Chie, Bin-Tzong, 2017. "The long-run performance of increasing-block pricing in Taiwan's residential electricity sector," Energy Policy, Elsevier, vol. 109(C), pages 782-793.
    6. Wang, Xiaolei & Wei, Chunxin & Wang, Yanhua, 2022. "Does the current tiered electricity pricing structure still restrain electricity consumption in China's residential sector?," Energy Policy, Elsevier, vol. 165(C).
    7. Kuang, Yunming & Lin, Boqiang, 2021. "Performance of tiered pricing policy for residential natural gas in China: Does the income effect matter?," Applied Energy, Elsevier, vol. 304(C).
    8. Wang, Chen & Zhou, Kaile & Yang, Shanlin, 2017. "A review of residential tiered electricity pricing in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 533-543.
    9. Wu, Ya & Zhang, Li, 2017. "Evaluation of energy saving effects of tiered electricity pricing and investigation of the energy saving willingness of residents," Energy Policy, Elsevier, vol. 109(C), pages 208-217.
    10. Liu, Chang & Lin, Boqiang, 2020. "Is increasing-block electricity pricing effectively carried out in China? A case study in Shanghai and Shenzhen," Energy Policy, Elsevier, vol. 138(C).
    11. Li, Yao & Fan, Jin & Zhao, Dingtao & Wu, Yanrui & Li, Jun, 2016. "Tiered gasoline pricing: A personal carbon trading perspective," Energy Policy, Elsevier, vol. 89(C), pages 194-201.
    12. Hancevic, Pedro Ignacio & Lopez-Aguilar, Javier Alejandro, 2019. "Energy efficiency programs in the context of increasing block tariffs: The case of residential electricity in Mexico," Energy Policy, Elsevier, vol. 131(C), pages 320-331.
    13. Yang, Changhui & Meng, Chen & Zhou, Kaile, 2018. "Residential electricity pricing in China: The context of price-based demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2870-2878.
    14. Wichman, Casey, 2024. "Efficiency, Equity, and Cost-Recovery Trade-Offs in Municipal Water Pricing," RFF Working Paper Series 24-18, Resources for the Future.
    15. Brandli Stitzel & Cynthia L. Rogers, 2022. "Residential Water Demand Under Increasing Block Rate Structure: Conservation Conundrum?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(1), pages 203-218, January.
    16. Lin, Boqiang & Lan, Tianxu, 2023. "Progress of increasing-block electricity pricing policy implementation in China's first-tier cities and the impact of resident policy perception," Energy Policy, Elsevier, vol. 177(C).
    17. Hu, Wenhao & Ho, Mun S. & Cao, Jing, 2019. "Energy consumption of urban households in China," China Economic Review, Elsevier, vol. 58(C).
    18. Wang, Yao & Lin, Boqiang, 2021. "Performance of alternative electricity prices on residential welfare in China," Energy Policy, Elsevier, vol. 153(C).
    19. María Ángeles García-Valiñas & Sara Suárez-Fernández, 2022. "Are Economic Tools Useful to Manage Residential Water Demand? A Review of Old Issues and Emerging Topics," Post-Print hal-04067487, HAL.
    20. R. Aaron Hrozencik & Dale T. Manning & Jordan F. Suter & Christopher Goemans, 2022. "Impacts of Block‐Rate Energy Pricing on Groundwater Demand in Irrigated Agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 404-427, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:139:y:2020:i:c:s0301421520300951. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.