Electricity Prices and Consumers' Long-Term Technology Choices: Evidence from Heating Investments
Sahari, Anna (2017-09-27)
Sahari, Anna
Valtion taloudellinen tutkimuskeskus
27.09.2017
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-274-202-5
https://urn.fi/URN:ISBN:978-952-274-202-5
Kuvaus
nonPeerReviewed
Tiivistelmä
This paper studies consumers' sensitivity to energy costs at the moment of making a long-term energy technology investment. The analysis exploits within-region variation in local, regulated electricity distribution prices that are very persistent over time and therefore a good measure of long-term price expectations. Price impacts are estimated on extensive administrative registry data of private persons acting as home builders in Finland during 2006-2011. The results show that electricity prices notably influence builders' heating choices, and price increases that are mostly due to taxation have induced demand for technologies based on renewable energy. However, the results on the comprehensive set of observable individual-level characteristics imply that issues related to information and credit availability may hamper price sensitivity.
Tutkimusteema
Environment, energy and climate policy
JEL
D12, D83, Q41, R22
Avainsanat
elasticity, electricity, discrete choice, consumer behavior
Kokoelmat
- VATT Working Papers [164]