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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

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

Classification and Topics

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

Contributors, Places and Time

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

Further information

• Handle: http://hdl.handle.net/10419/247394
• Last update: 10.03.2025, 11:42 AM CET