Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: IES Working Paper ; No. 27/2021

Classification
Wirtschaft
Subject
appliances
increasing-block-rate tariff
electricity prices
energy efficiency gap

Event
Geistige Schöpfung
(who)
Turdaliev, Salim
Event
Veröffentlichung
(who)
Charles University in Prague, Institute of Economic Studies (IES)
(where)
Prague
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Turdaliev, Salim
  • Charles University in Prague, Institute of Economic Studies (IES)

Time of origin

  • 2021

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