IDEAS home Printed from https://ideas.repec.org/p/war/wpaper/2019-10.html
   My bibliography  Save this paper

Impact of social comparison on DSM in Poland

Author

Listed:
  • Bernadeta Gołębiowska

    (Faculty of Economic Sciences, University of Warsaw)

  • Anna Bartczak

    (Faculty of Economic Sciences, University of Warsaw)

  • Wiktor Budziński

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

Poland’s energy strategy prioritizes long-term energy security, energy efficiency, reducing greenhouse gas emissions. The country’s progress toward sustainable development requires in-depth analyses of possible solutions. In our study we investigate consumers’ preferences for Demand Side Management programs for electricity usage in Poland. We apply a discrete Choice Experiment framework for various electricity contracts implying the external control of electricity usage. The main objective of the study is to investigate the value of potential disutility of Polish households from the energy management. Additionally, we elaborate on the effect of social comparison between households’ electricity use on the acceptance of new electricity contracts. The results suggest that people require substantial compensations to accept the external control of electricity in extreme cases and in weekdays during certain hours. Turning to the social comparison, we were expecting that people with a higher electricity usage per person in a household will require lower compensations, however we observe the opposite result. The respondents who were informed that they use more electricity than an average person in his administrative district seem to feel higher discomfort from the external electricity control. This suggest that the effect of social comparison might be overbalanced by the differences in perceived utility from electricity usage.

Suggested Citation

  • Bernadeta Gołębiowska & Anna Bartczak & Wiktor Budziński, 2019. "Impact of social comparison on DSM in Poland," Working Papers 2019-10, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2019-10
    as

    Download full text from publisher

    File URL: https://www.wne.uw.edu.pl/index.php/download_file/4919/
    File Function: First version, 2019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Petra Mesarić & Damira Đukec & Slavko Krajcar, 2017. "Exploring the Potential of Energy Consumers in Smart Grid Using Focus Group Methodology," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    2. Rafik Nafkha & Krzysztof Gajowniczek & Tomasz Ząbkowski, 2018. "Do Customers Choose Proper Tariff? Empirical Analysis Based on Polish Data Using Unsupervised Techniques," Energies, MDPI, vol. 11(3), pages 1-17, February.
    3. Anderson, Kyle & Song, Kwonsik & Lee, SangHyun & Krupka, Erin & Lee, Hyunsoo & Park, Moonseo, 2017. "Longitudinal analysis of normative energy use feedback on dormitory occupants," Applied Energy, Elsevier, vol. 189(C), pages 623-639.
    4. Broberg, Thomas & Persson, Lars, 2016. "Is our everyday comfort for sale? Preferences for demand management on the electricity market," Energy Economics, Elsevier, vol. 54(C), pages 24-32.
    5. Kempton, Willett & Layne, Linda L., 1994. "The consumer's energy analysis environment," Energy Policy, Elsevier, vol. 22(10), pages 857-866, October.
    6. Weber, Sylvain & Puddu, Stefano & Pacheco, Diana, 2017. "Move it! How an electric contest motivates households to shift their load profile," Energy Economics, Elsevier, vol. 68(C), pages 255-270.
    7. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    8. Andrius Kažukauskas & Thomas Broberg & Jūratė Jaraitė, 2021. "Social Comparisons in Real Time: A Field Experiment of Residential Electricity and Water Use," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 558-592, April.
    9. Delmas, Magali A. & Lessem, Neil, 2014. "Saving power to conserve your reputation? The effectiveness of private versus public information," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 353-370.
    10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    11. Vesterberg, Mattias & Kiran B. Krishnamurthy, Chandra, 2014. "Residential End use electricity demand and the implications for real time pricing in Sweden," Umeå Economic Studies 903, Umeå University, Department of Economics, revised 15 Apr 2015.
    12. Blasch, Julia & Filippini, Massimo & Kumar, Nilkanth, 2019. "Boundedly rational consumers, energy and investment literacy, and the display of information on household appliances," Resource and Energy Economics, Elsevier, vol. 56(C), pages 39-58.
    13. Kendel, Adnane & Lazaric, Nathalie & Maréchal, Kevin, 2017. "What do people ‘learn by looking’ at direct feedback on their energy consumption? Results of a field study in Southern France," Energy Policy, Elsevier, vol. 108(C), pages 593-605.
    14. Vassileva, Iana & Wallin, Fredrik & Dahlquist, Erik, 2012. "Understanding energy consumption behavior for future demand response strategy development," Energy, Elsevier, vol. 46(1), pages 94-100.
    15. Faruqui, Ahmad & Sergici, Sanem & Sharif, Ahmed, 2010. "The impact of informational feedback on energy consumption—A survey of the experimental evidence," Energy, Elsevier, vol. 35(4), pages 1598-1608.
    16. Torriti, Jacopo, 2012. "Price-based demand side management: Assessing the impacts of time-of-use tariffs on residential electricity demand and peak shifting in Northern Italy," Energy, Elsevier, vol. 44(1), pages 576-583.
    17. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    18. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    19. Schleich, Joachim & Klobasa, Marian & Gölz, Sebastian & Brunner, Marc, 2013. "Effects of feedback on residential electricity demand—Findings from a field trial in Austria," Energy Policy, Elsevier, vol. 61(C), pages 1097-1106.
    20. 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.
    21. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    22. Carroll, James & Lyons, Seán & Denny, Eleanor, 2014. "Reducing household electricity demand through smart metering: The role of improved information about energy saving," Energy Economics, Elsevier, vol. 45(C), pages 234-243.
    23. Hutton, R Bruce, et al, 1986. "Effects of Cost-Related Feedback on Consumer Knowledge and Consumption Behavior: A Field Experimental Approach," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(3), pages 327-336, December.
    24. Day, Brett & Bateman, Ian J. & Carson, Richard T. & Dupont, Diane & Louviere, Jordan J. & Morimoto, Sanae & Scarpa, Riccardo & Wang, Paul, 2012. "Ordering effects and choice set awareness in repeat-response stated preference studies," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 73-91.
    25. Strbac, Goran, 2008. "Demand side management: Benefits and challenges," Energy Policy, Elsevier, vol. 36(12), pages 4419-4426, December.
    26. Fei Wang & Liming Liu & Yili Yu & Gang Li & Jessica Li & Miadreza Shafie-khah & João P. S. Catalão, 2018. "Impact Analysis of Customized Feedback Interventions on Residential Electricity Load Consumption Behavior for Demand Response," Energies, MDPI, vol. 11(4), pages 1-22, March.
    27. Horne, Christine & Kennedy, Emily Huddart, 2017. "The power of social norms for reducing and shifting electricity use," Energy Policy, Elsevier, vol. 107(C), pages 43-52.
    28. José A. Pellerano & Michael K. Price & Steven L. Puller & Gonzalo E. Sánchez, 2017. "Do Extrinsic Incentives Undermine Social Norms? Evidence from a Field Experiment in Energy Conservation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 413-428, July.
    29. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    30. Ahmad Faruqui & Sanem Sergici, 2010. "Household response to dynamic pricing of electricity: a survey of 15 experiments," Journal of Regulatory Economics, Springer, vol. 38(2), pages 193-225, October.
    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. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy Demand Management and Social Norms," Energies, MDPI, vol. 13(15), pages 1-20, July.
    2. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy demand management and social norms – the case study in Poland," Working Papers 2020-25, Faculty of Economic Sciences, University of Warsaw.

    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. Gołębiowska, Bernadeta & Bartczak, Anna & Budziński, Wiktor, 2021. "Impact of social comparison on preferences for Demand Side Management in Poland," Energy Policy, Elsevier, vol. 149(C).
    2. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy demand management and social norms – the case study in Poland," Working Papers 2020-25, Faculty of Economic Sciences, University of Warsaw.
    3. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy Demand Management and Social Norms," Energies, MDPI, vol. 13(15), pages 1-20, July.
    4. Batalla-Bejerano, Joan & Trujillo-Baute, Elisa & Villa-Arrieta, Manuel, 2020. "Smart meters and consumer behaviour: Insights from the empirical literature," Energy Policy, Elsevier, vol. 144(C).
    5. Buckley, Penelope, 2020. "Prices, information and nudges for residential electricity conservation: A meta-analysis," Ecological Economics, Elsevier, vol. 172(C).
    6. Broberg, Thomas & Persson, Lars, 2016. "Is our everyday comfort for sale? Preferences for demand management on the electricity market," Energy Economics, Elsevier, vol. 54(C), pages 24-32.
    7. Spandagos, Constantine & Baark, Erik & Ng, Tze Ling & Yarime, Masaru, 2021. "Social influence and economic intervention policies to save energy at home: Critical questions for the new decade and evidence from air-condition use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    8. Crago, Christine L. & Spraggon, John M. & Hunter, Elizabeth, 2020. "Motivating non-ratepaying households with feedback and social nudges: A cautionary tale," Energy Policy, Elsevier, vol. 145(C).
    9. Cédric Clastres & Haikel Khalfallah, 2020. "Retailers' strategies facing demand response and markets interactions," Working Papers hal-03167543, HAL.
    10. Khosrowpour, Ardalan & Jain, Rishee K. & Taylor, John E. & Peschiera, Gabriel & Chen, Jiayu & Gulbinas, Rimas, 2018. "A review of occupant energy feedback research: Opportunities for methodological fusion at the intersection of experimentation, analytics, surveys and simulation," Applied Energy, Elsevier, vol. 218(C), pages 304-316.
    11. Ricci, Elena Claire & Banterle, Alessandro, 2020. "Do major climate change-related public events have an impact on consumer choices?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    12. Weber, Sylvain & Puddu, Stefano & Pacheco, Diana, 2017. "Move it! How an electric contest motivates households to shift their load profile," Energy Economics, Elsevier, vol. 68(C), pages 255-270.
    13. Vesterberg, Mattias, 2017. "Power to the people: Electricity demand and household behavior," Umeå Economic Studies 942, Umeå University, Department of Economics.
    14. Clastres, Cédric & Khalfallah, Haikel, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Energy Economics, Elsevier, vol. 98(C).
    15. Asmare, Fissha & Jaraitė, Jūratė & Kažukauskas, Andrius, 2021. "The effect of descriptive information provision on electricity consumption: Experimental evidence from Lithuania," Energy Economics, Elsevier, vol. 104(C).
    16. Cédric Clastres & Haikel Khalfallah, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Post-Print hal-03193212, HAL.
    17. Cardella, Eric & Ewing, Brad & Williams, Ryan Blake, 2018. "Green is Good – The Impact of Information Nudges on the Adoption of Voluntary Green Power Plans," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266583, Southern Agricultural Economics Association.
    18. Nilsson, Anders & Lazarevic, David & Brandt, Nils & Kordas, Olga, 2018. "Household responsiveness to residential demand response strategies: Results and policy implications from a Swedish field study," Energy Policy, Elsevier, vol. 122(C), pages 273-286.
    19. Céline Nauges & Dale Whittington, 2019. "Social Norms Information Treatments in the Municipal Water Supply Sector: Some New Insights on Benefits and Costs," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-40, July.
    20. Sandro Casal & Nives DellaValle & Luigi Mittone & Ivan Soraperra, 2017. "Feedback and efficient behavior," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-21, April.

    More about this item

    Keywords

    choice experiment; demand side management; electricity; social comparison; 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
    • D19 - Microeconomics - - Household Behavior - - - Other
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:war:wpaper:2019-10. 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: Marcin Bąba (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    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.