Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs

Authored by Anna Kowalska-Pyzalska, Katarzyna Maciejowska, Karol Suszczynski

Date Published: 2014-09

DOI: 10.1016/j.enpol.2014.04.021

Sponsors: No sponsors listed

Platforms: No platforms listed

Model Documentation: Other Narrative

Model Code URLs: Model code not found

Abstract

Using an agent-based modeling approach we study the temporal dynamics of consumer opinions regarding switching to dynamic electricity tariffs and the actual decisions to switch. We assume that the decision to switch is based on the unanimity of, tau past opinions. The resulting model offers a hypothetical, yet plausible explanation of why there is such a big discrepancy between consumer opinions, as measured by market surveys, and the actual participation in pilot programs and the adoption of dynamic tariffs. We argue that due to the high indifference level in today's retail electricity markets, customer opinions are very unstable and change frequently. The conducted simulation study shows that reducing the indifference level can result in narrowing the intention-behavior gap. A similar effect can be achieved by decreasing the decision time that a consumer takes to make a decision. (C) 2014 Elsevier Ltd. All rights reserved.

Tags

Agent-based model Demand response Innovation Diffusion Dynamic pricing Consumer decisions Intention-behavior gap