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Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs

  • Anna Kowalska-Pyzalska
  • Katarzyna Maciejowska
  • Katarzyna Sznajd-Weron
  • Karol Suszczynski
  • Rafal Weron

Using an agent-based modeling approach we study the temporal dynamics of consumer opinions regarding switching to dynamic electricity tariffs and the actual decisions to switch. We assume that the decision to switch is based on the unanimity of $\tau$ past opinions. The resulting model explains why there is such a big discrepancy between consumer opinions, as measured by market surveys, and the actual participation in pilot programs and the adoption of dynamic tariffs. We argue that due to the high indifference level in today's retail electricity markets, customer opinions are very unstable and change frequently. The conducted simulation study shows that reducing the indifference level can result in narrowing the intention-behavior gap. A similar effect can be achieved by decreasing the decision time that a consumer takes to make a decision.

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File URL: http://www.im.pwr.wroc.pl/~hugo/RePEc/wuu/wpaper/HSC_13_10.pdf
File Function: Original version, 2013; Final version published in Energy Policy 72, 164-174 (2014; doi:10.1016/j.enpol.2014.04.021)
Download Restriction: no

Paper provided by Hugo Steinhaus Center, Wroclaw University of Technology in its series HSC Research Reports with number HSC/13/10.

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Length: 21 pages
Date of creation: 04 Nov 2013
Date of revision:
Handle: RePEc:wuu:wpaper:hsc1310
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  8. Piotr Przybyla & Katarzyna Sznajd-Weron & Rafal Weron, 2013. "Diffusion of innovation within an agent-based model: Spinsons, independence and advertising," HSC Research Reports HSC/13/04, Hugo Steinhaus Center, Wroclaw University of Technology.
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  17. Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
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