Publication detail

Increasing Block Rate Electricity Pricing and Propensity to Purchase Electric Appliances: Evidence from a Natural Experiment

Author(s): Salim Turdaliev BSc M.A.,
Type: Article in collection
Year: 2021
Number: 43
ISSN / ISBN:
Published in: The 1st IAEE Online International Conference 2021: Energy, Covid and Climate Change. International Association for Energy Economics.
Publishing place: The 1st IAEE Online International Conference 2021: Energy, Covid and Climate Change. International Association for Energy Economics.
Keywords: appliances, increasing-block-rate tariff, electricity prices, energy efficiency gap
JEL codes: Q3, Q4, D1, D9
Suggested Citation:
Grants: GAUK 454120 The effect of non-linear tariff on energy demand and investment in electric durables in Transition Economies: Micro data estimation and natural experiment
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.

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