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

This paper provides empirical evidence on the relationship between the increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electrical appliances. I use a variation from a natural experiment in Russia that introduced IBR pricing for residential electricity...

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Autor principal:	Salim Turdaliev
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	appliances increasing-block-rate tariff electricity prices energy efficiency gap Technology T
Acceso en línea:	https://doaj.org/article/ea7da810ac39483d91d15a569da12fd9
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spelling	oai:doaj.org-article:ea7da810ac39483d91d15a569da12fd92021-11-11T15:46:39ZIncreasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia10.3390/en142169541996-1073https://doaj.org/article/ea7da810ac39483d91d15a569da12fd92021-10-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/21/6954https://doaj.org/toc/1996-1073This paper provides empirical evidence on the relationship between the increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electrical appliances. I use a 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 electrical appliances during the last three months. Using a difference-in-differences specification, I show that the purchase of major electrical appliances in the regions with IBR pricing has increased by more than 20% (or more than two percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behaviour of households.Salim TurdalievMDPI AGarticleappliancesincreasing-block-rate tariffelectricity pricesenergy efficiency gapTechnologyTENEnergies, Vol 14, Iss 6954, p 6954 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	appliances increasing-block-rate tariff electricity prices energy efficiency gap Technology T
spellingShingle	appliances increasing-block-rate tariff electricity prices energy efficiency gap Technology T Salim Turdaliev Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
description	This paper provides empirical evidence on the relationship between the increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electrical appliances. I use a 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 electrical appliances during the last three months. Using a difference-in-differences specification, I show that the purchase of major electrical appliances in the regions with IBR pricing has increased by more than 20% (or more than two percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behaviour of households.
format	article
author	Salim Turdaliev
author_facet	Salim Turdaliev
author_sort	Salim Turdaliev
title	Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
title_short	Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
title_full	Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
title_fullStr	Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
title_full_unstemmed	Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia
title_sort	increasing block rate electricity pricing and propensity to purchase electrical appliances: evidence from a natural experiment in russia
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/ea7da810ac39483d91d15a569da12fd9
work_keys_str_mv	AT salimturdaliev increasingblockrateelectricitypricingandpropensitytopurchaseelectricalappliancesevidencefromanaturalexperimentinrussia
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Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia

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