Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247394 
Year of Publication: 
2021
Series/Report no.: 
IES Working Paper No. 27/2021
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
This paper provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electric appliances. I use 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 electric appliances during the last 3 months. Using difference-in-differences specification I show that in the regions with IBR pricing the purchase of major electric appliances has increased by more than 25 percent (2 percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behavior of households.
Subjects: 
appliances
increasing-block-rate tariff
electricity prices
energy efficiency gap
JEL: 
Q3
Q4
D1
D9
Document Type: 
Working Paper

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