INCREASING BLOCK RATE ELECTRICITY PRICING AND PROPENSITY TO PURCHASE ELECTRIC APPLIANCES: EVIDENCE FROM A NATURAL EXPERIMENT
INCREASING BLOCK RATE ELECTRICITY PRICING AND PROPENSITY TO PURCHASE ELECTRIC APPLIANCES: EVIDENCE FROM A NATURAL EXPERIMENT
| Author: | Salim Turdaliev BSc M.A., |
|---|---|
| Type: | IES Working Papers |
| Year: | 2021 |
| Number: | 27 |
| ISSN / ISBN: | |
| Published in: | IES Working Papers 27/2021 |
| Publishing place: | Prague |
| Keywords: | appliances, increasing-block-rate tariff, electricity prices, energy efficiency gap |
| JEL codes: | Q3, Q4, D1, D9 |
| Suggested Citation: | Turdaliev S. (2021): "Increasing Block Rate Electricity Pricing and Propensity to Purchase Electric Appliances: Evidence from a Natural Experiment" IES Working Papers 27/2021. IES FSV. Charles University. |
| Abstract: | This paper provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electric appliances. I use variation from a natural experiment in Russia that introduced IBR pricing for residential electricity in a number of experimental regions in 2013. The study employs household-level panel data which records, among others, whether the household has purchased any major electric appliances during the last 3 months. Using difference-in-differences specification I show that in the regions with IBR pricing the purchase of major electric appliances has increased by more than 25 percent (2 percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behavior of households. |
| Downloadable: | wp_2021_27_turdaliev.pdf |
