University of Oulu

Homeowners’ preferences for electricity contracts and demand response

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Author: Tuorila, Mikael1
Organizations: 1University of Oulu, Oulu Business School, Department of Economics, Economics
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.2 MB)
Pages: 68
Persistent link: http://urn.fi/URN:NBN:fi:oulu-201908232811
Language: English
Published: Oulu : M. Tuorila, 2019
Publish Date: 2019-08-26
Thesis type: Master's thesis
Tutor: Ruokamo, Enni
Reviewer: Kopsakangas-Savolainen, Maria
Ruokamo, Enni
Description:

Abstract

Despite the importance of electricity in the lives of 21st century people, the details of electricity contracts and the market system are relatively overlooked matters in people’s daily lives. The aim of this master’s thesis is to study Finnish homeowners’ knowledge about the electricity markets and their preferences for dynamic-priced electricity contracts and demand response. We study these topics by conducting three binary logit regressions based on a sample data that consists of 380 respondents. The data is from a survey that was originally conducted in October 2016. Choosing electricity contract is a discrete choice for a household. Therefore, the empirical part of this thesis was done with discrete regression model.

Based on our findings we argue that raising awareness of individual and more importantly societal advantages is the key to achieve better demand side management of power markets. People who express general interest in electricity issues and their consumption behaviour are more likely to accept demand response contracts. Overall, we argue that people should be more informed about electricity matters. Knowledge about the impacts of one’s decisions seem to be good catalyst for people to re-evaluate their choices. Moreover, we suggest that the results of this thesis emphasize the fact that monetary incentives in electricity contracts are not the only value creating element for the household. The results indicate that invoking on environmental aspects of these concepts will improve the overall acceptance of demand side management substantially.

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Copyright information: © Mikael Tuorila, 2019. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.