Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2019:8: Household Preferences for Load Restrictions: Is There an Effect of Pro-Environmental Framing?

Thomas Broberg (), Aemiro Melkamu Daniel () and Lars Persson ()
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Thomas Broberg: CERE - the Center for Environmental and Resource Economics
Aemiro Melkamu Daniel: CERE - the Center for Environmental and Resource Economics
Lars Persson: CERE - the Center for Environmental and Resource Economics

Abstract: In this paper we investigate if a pro-environmental framing influences households' stated willingness to accept restrictions on their electricity use. We use a split-sample choice experiment (CE) and ask respondents to choose between their current electricity contract and hypothetical contracts featuring various load controls and a monetary compensation. Our results indicate that the pro-environmental framing have little impact on the respondents' choices. We observe a significant framing effect on choices and marginal willingness-to-accept (MWTA) for only a few contract attributes. The results further suggest that there is no significant framing effect among households that engage in different pro-environmental activities.

Keywords: Choice experiment; Demand response; Electricity contract; Load management; Pro-environmental framing; Willingness to accept

JEL-codes: C25; D83; Q51; Q54

28 pages, June 12, 2019

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