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Effect of an electricity voucher on electricity use

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  • Viggers, Helen
  • Keall, Michael
  • Howden-Chapman, Philippa
  • Wickens, Kristin
  • Ingham, Tristram
  • Davies, Cheryl
  • Chapman, Ralph
  • Crane, Julian

Abstract

The aim of this paper is to examine the effect of receiving a voucher for electricity on the electricity use of a household. The Warm Homes for Elder New Zealanders Study was a randomised controlled trial which gave participants aged over 55 with chronic obstructive pulmonary disease a voucher providing NZ$500 credit to their electricity account for one winter. Electricity use increased over the winter the participant received the voucher. Participants with lower initial electricity use increased their consumption by about 10%, those with medium- or high-initial use by 2–3%. However, most participants did not use the entire value of the voucher on additional electricity. The study involved only a small informational component: this consisted of a brochure sent to the participants to encourage them to increase their energy use. This was designed to mimic the effects of a possible widespread rollout of this programme. The policy implication of this analysis is that a winter energy voucher accompanied by minimal education was effective at increasing winter energy use among a vulnerable sub-population with a health condition that merited additional heating in winter.

Suggested Citation

  • Viggers, Helen & Keall, Michael & Howden-Chapman, Philippa & Wickens, Kristin & Ingham, Tristram & Davies, Cheryl & Chapman, Ralph & Crane, Julian, 2019. "Effect of an electricity voucher on electricity use," Energy Policy, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:enepol:v:134:y:2019:i:c:s0301421519305725
    DOI: 10.1016/j.enpol.2019.110985
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    References listed on IDEAS

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    1. Beatty, Timothy K.M. & Blow, Laura & Crossley, Thomas F. & O'Dea, Cormac, 2014. "Cash by any other name? Evidence on labeling from the UK Winter Fuel Payment," Journal of Public Economics, Elsevier, vol. 118(C), pages 86-96.
    2. Thomas F. Crossley & Federico Zilio, 2018. "The health benefits of a targeted cash transfer: The UK Winter Fuel Payment," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1354-1365, September.
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    4. Howden-Chapman, Philippa & Viggers, Helen & Chapman, Ralph & O’Sullivan, Kimberley & Telfar Barnard, Lucy & Lloyd, Bob, 2012. "Tackling cold housing and fuel poverty in New Zealand: A review of policies, research, and health impacts," Energy Policy, Elsevier, vol. 49(C), pages 134-142.
    5. Kasperbauer, T.J., 2017. "The permissibility of nudging for sustainable energy consumption," Energy Policy, Elsevier, vol. 111(C), pages 52-57.
    6. Howden-Chapman, Philippa & Viggers, Helen & Chapman, Ralph & O'Dea, Des & Free, Sarah & O'Sullivan, Kimberley, 2009. "Warm homes: Drivers of the demand for heating in the residential sector in New Zealand," Energy Policy, Elsevier, vol. 37(9), pages 3387-3399, September.
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    1. Weigert, Andreas & Hopf, Konstantin & Günther, Sebastian A. & Staake, Thorsten, 2022. "Heat pump inspections result in large energy savings when a pre-selection of households is performed: A promising use case of smart meter data," Energy Policy, Elsevier, vol. 169(C).
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