Publication detail

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

Author(s): Salim Turdaliev BSc M.A.,
Type: Article in collection
Year: 2021
Number: 23
ISSN / ISBN: 978-80-88320-63-1
Published in: The 23rd Annual Conference on Environmental Economics, Policy and International Relations VSE-UK, Prague, Czech Republic
Publishing place: Prague, Czech Republic
Keywords: appliances, increasing-block-rate tariff, electricity prices, energy efficiency gap
JEL codes: Q3, Q4, D1, D9
Suggested Citation:
Grants: GAUK 454120 The effect of non-linear tariff on energy demand and investment in electric durables in Transition Economies: Micro data estimation and natural experiment
Abstract: This paper provides empirical evidence on the relationship between the increasing-block- rate (IBR) pricing of electricity and the propensity of households to buy major electrical appliances. I use a 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 electrical appliances during the last three months. Using a difference-in-differences specification, I show that the purchase of major electrical appliances in the regions with IBR pricing has increased by more than 20% (or more than two percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behaviour of households.

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