Cognitive Factors That Influence Consumers' Responses to Innovative Rate Structures

摘要

This paper discusses the assumptions that have been made with regard to the price signal in the context of research on time-dependent electric rate structures, and demonstrates the impact on consumer behavior when these assumptions are not met. It summarizes the results of an investigation of consumers' understanding of the pricing manipulations employed in a DOE-sponsored time-of-use (TOU) demonstration experiment conducted in Edmond, Oklahoma. In addition, the impact of various TOU rate structures on consumers' electric consumption as a function of their understanding of the price signal is inspected. Finally, the factors that appear to influence such understanding is also discussed. (ERA citation 09:033481)