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Is cognition of residential tiered pricing policy effective in reducing electricity consumption in China?

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  • Lin, Hongyang
  • Jia, Huanyu
  • Ye, Yingjin
  • Shen, Yu
  • Lin, Boqiang

Abstract

China's residential tiered electricity pricing has been implemented for over a decade without a timely update. Past researches reveal the significant energy-saving effect of public policy cognition. This paper traces the relationship leveraging data from two surveys conducted in 2019 and 2023. We find that residents with some policy knowledge rose by one-third. However, policy cognition does not appear to lead to usage reductions. One crucial explanation is that changes in payment modes lower the salience of electricity bills, resulting in pronounced price misperceptions. This paper documents the role of adequate information feedback in enhancing the nonlinear tariff effect.

Suggested Citation

  • Lin, Hongyang & Jia, Huanyu & Ye, Yingjin & Shen, Yu & Lin, Boqiang, 2024. "Is cognition of residential tiered pricing policy effective in reducing electricity consumption in China?," Utilities Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:juipol:v:90:y:2024:i:c:s0957178724001012
    DOI: 10.1016/j.jup.2024.101808
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