Template-Type: ReDIF-Paper 1.0
Title: Barriers to Real-Time Electricity Pricing: Evidence From New Zealand
Author-Name: Charles Pébereau
Author-Email:charles.pebereau@gmail.com
Author-Name: Kevin Remmy
Author-Email:remmy@uni-mannheim.de

Classification-JEL: D12, D83, D91, L52, L81, L94, Q41
Keywords: energy, time-varying pricing, consumer behavior, learning

Abstract: This paper studies the introduction of real-time electricity pricing in the New Zealand
residential retail market to understand why its market share remained below 1.25%. We use
rich panel data of all retail switches between 2014 and 2018 and an unexpected wholesale
price spike to study adoption and attrition. Exploiting the staggered roll-out of real-time
pricing in different locations we find that attrition decreases with experience. We also
find that prospective adopters are present biased. The combination of these findings explains
why adoption stalled and shows that wholesale price spikes pose a serious threat to
widespread adoption of real-time pricing.

Note: 
Length: 41
Creation-Date: 2022-03
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp339
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2022_339