The effect of demand response on purchase intention of distributed generation

Evidence from Japan

Tatsuhiro Nakada, Kongjoo Shin, Shunsuke Managi

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Participation in demand response (DR) may affect a consumer's electric consumption pattern through consumption load curtailment, a shift in the consumption timing or increasing the utilization of distributed generation (DG). This paper attempts to provide empirical evidence of DR's effect on DG adoption by household consumers. By using the original Internet survey data of 5442 household respondents in Japan conducted in January 2015, we focus on the effect of the time-of-use (TOU) tariff on the purchasing intention of photovoltaic systems (PV). The empirical results show the following: 1) current TOU plan users have stronger PV purchase intentions than the other plan users, 2) respondents who are familiar with the DR program have relatively higher purchase intentions compared with their counterparts, and 3) when the respondents are requested to assume participation in the virtual TOU plan designed for the survey, which resembles plans currently available through major companies, 1.2% of the households have decided to purchase PV. In addition, we provide calculations of TOU's impacts on the official PV adoption and emissions reduction targets, and discuss policy recommendations to increase recognitions and participations in TOU programs.

Original languageEnglish
Pages (from-to)307-316
Number of pages10
JournalEnergy Policy
Volume94
DOIs
Publication statusPublished - Jul 1 2016

Fingerprint

photovoltaic system
Distributed power generation
Purchasing
Internet
Industry
effect
demand
plan
purchase
participation
household
consumption
programme

All Science Journal Classification (ASJC) codes

  • Energy(all)
  • Management, Monitoring, Policy and Law

Cite this

The effect of demand response on purchase intention of distributed generation : Evidence from Japan. / Nakada, Tatsuhiro; Shin, Kongjoo; Managi, Shunsuke.

In: Energy Policy, Vol. 94, 01.07.2016, p. 307-316.

Research output: Contribution to journalArticle

@article{e5161d411fab473a8533b4d85f842213,
title = "The effect of demand response on purchase intention of distributed generation: Evidence from Japan",
abstract = "Participation in demand response (DR) may affect a consumer's electric consumption pattern through consumption load curtailment, a shift in the consumption timing or increasing the utilization of distributed generation (DG). This paper attempts to provide empirical evidence of DR's effect on DG adoption by household consumers. By using the original Internet survey data of 5442 household respondents in Japan conducted in January 2015, we focus on the effect of the time-of-use (TOU) tariff on the purchasing intention of photovoltaic systems (PV). The empirical results show the following: 1) current TOU plan users have stronger PV purchase intentions than the other plan users, 2) respondents who are familiar with the DR program have relatively higher purchase intentions compared with their counterparts, and 3) when the respondents are requested to assume participation in the virtual TOU plan designed for the survey, which resembles plans currently available through major companies, 1.2{\%} of the households have decided to purchase PV. In addition, we provide calculations of TOU's impacts on the official PV adoption and emissions reduction targets, and discuss policy recommendations to increase recognitions and participations in TOU programs.",
author = "Tatsuhiro Nakada and Kongjoo Shin and Shunsuke Managi",
year = "2016",
month = "7",
day = "1",
doi = "10.1016/j.enpol.2016.04.026",
language = "English",
volume = "94",
pages = "307--316",
journal = "Energy Policy",
issn = "0301-4215",
publisher = "Elsevier BV",

}

TY - JOUR

T1 - The effect of demand response on purchase intention of distributed generation

T2 - Evidence from Japan

AU - Nakada, Tatsuhiro

AU - Shin, Kongjoo

AU - Managi, Shunsuke

PY - 2016/7/1

Y1 - 2016/7/1

N2 - Participation in demand response (DR) may affect a consumer's electric consumption pattern through consumption load curtailment, a shift in the consumption timing or increasing the utilization of distributed generation (DG). This paper attempts to provide empirical evidence of DR's effect on DG adoption by household consumers. By using the original Internet survey data of 5442 household respondents in Japan conducted in January 2015, we focus on the effect of the time-of-use (TOU) tariff on the purchasing intention of photovoltaic systems (PV). The empirical results show the following: 1) current TOU plan users have stronger PV purchase intentions than the other plan users, 2) respondents who are familiar with the DR program have relatively higher purchase intentions compared with their counterparts, and 3) when the respondents are requested to assume participation in the virtual TOU plan designed for the survey, which resembles plans currently available through major companies, 1.2% of the households have decided to purchase PV. In addition, we provide calculations of TOU's impacts on the official PV adoption and emissions reduction targets, and discuss policy recommendations to increase recognitions and participations in TOU programs.

AB - Participation in demand response (DR) may affect a consumer's electric consumption pattern through consumption load curtailment, a shift in the consumption timing or increasing the utilization of distributed generation (DG). This paper attempts to provide empirical evidence of DR's effect on DG adoption by household consumers. By using the original Internet survey data of 5442 household respondents in Japan conducted in January 2015, we focus on the effect of the time-of-use (TOU) tariff on the purchasing intention of photovoltaic systems (PV). The empirical results show the following: 1) current TOU plan users have stronger PV purchase intentions than the other plan users, 2) respondents who are familiar with the DR program have relatively higher purchase intentions compared with their counterparts, and 3) when the respondents are requested to assume participation in the virtual TOU plan designed for the survey, which resembles plans currently available through major companies, 1.2% of the households have decided to purchase PV. In addition, we provide calculations of TOU's impacts on the official PV adoption and emissions reduction targets, and discuss policy recommendations to increase recognitions and participations in TOU programs.

UR - http://www.scopus.com/inward/record.url?scp=84963800530&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84963800530&partnerID=8YFLogxK

U2 - 10.1016/j.enpol.2016.04.026

DO - 10.1016/j.enpol.2016.04.026

M3 - Article

VL - 94

SP - 307

EP - 316

JO - Energy Policy

JF - Energy Policy

SN - 0301-4215

ER -