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Household Preferences for Load Restrictions: Is There an Effect of Pro-Environmental Framing?

Author

Listed:
  • Broberg, Thomas

    () (CERE - the Center for Environmental and Resource Economics)

  • Melkamu Daniel , Aemiro

    () (CERE - the Center for Environmental and Resource Economics)

  • Persson, Lars

    () (CERE - the Center for Environmental and Resource Economics)

Abstract

In this paper we investigate if a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment (CE) 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 pro-environmental framing have little impact on the respondents' choices. We observe a significant framing effect on choices and marginal willingness-to-accept (MWTA) for only a few contract attributes. The results further suggest that there is no significant framing effect among households that engage in different pro-environmental activities.

Suggested Citation

  • Broberg, Thomas & Melkamu Daniel , Aemiro & Persson, Lars, 2019. "Household Preferences for Load Restrictions: Is There an Effect of Pro-Environmental Framing?," CERE Working Papers 2019:8, CERE - the Center for Environmental and Resource Economics.
  • Handle: RePEc:hhs:slucer:2019_008
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    More about this item

    Keywords

    Choice experiment; Demand response; Electricity contract; Load management; Pro-environmental framing; Willingness to accept;

    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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