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Which factors influence large households’ decision to join a time-of-use program? The interplay between demand flexibility, personal benefits and national benefits

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  • Parag, Yael

Abstract

The residential sector's electricity consumption during peak hours is significant. Reducing it would be valuable in economic and environmental terms, particularly for isolated grids and ‘electricity islands'. While time-of-use (TOU) programs could help moderate this demand, in many countries such programs are voluntary, with low enrollment rates. An experimental survey design was used to test the impact of four framings of a residential TOU program on the stated willingness of 452 large Israeli households (four or more people) to enroll in a TOU program. Two of the framings emphasized the economic benefits of the program, and offered 25% and 50% off-peak discount rates. The other two framings highlighted environmental benefits and national energy independence (in addition to the discount). The impact of socio-demographic variables, demand flexibility, convenience, environmental awareness and interest in automation were also evaluated. While no framing effect was found, a hierarchical regression model (R2 = 66%) revealed that the strongest predictor of interest in enrollment is the perception that the TOU program will contribute to the environment and to the county's energy independence, followed by the potential economic benefits to the household and flexibility of demand. None of the socio-demographic variables was a predictor. The results suggest that highlighting national benefits might be more effective than highlighting household benefits in fostering enrollment in TOU programs.

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  • Parag, Yael, 2021. "Which factors influence large households’ decision to join a time-of-use program? The interplay between demand flexibility, personal benefits and national benefits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:rensus:v:139:y:2021:i:c:s1364032120308789
    DOI: 10.1016/j.rser.2020.110594
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    2. Dana Abi Ghanem & Tracey Crosbie, 2021. "The Transition to Clean Energy: Are People Living in Island Communities Ready for Smart Grids and Demand Response?," Energies, MDPI, vol. 14(19), pages 1-26, September.

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