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Title: Flexible customer willingness to pay for bundled smart home energy products and services
Energy markets are rapidly changing with smarter, connected, more reliable infrastructure and cleaner generation on the supply side, and more choice, greater control and enhanced flexibility for customers. This paper examines willingness to pay for bundled smart home energy products and information services, using data from a set of two discrete choice experiments that were part of a survey by the regional energy provider of upstate New York. To let the data reveal how preferences are distributed in the population, a logit-mixed logit model in willingness-to-pay space and a combination of observed and unobserved preference heterogeneity was specified and fitted. Results show that residents of Tompkins County are willing to pay more than in other counties for residential storage, and that for home energy management there is an important generational divide with millennials being much more likely to perceive the economic value in the smart energy technologies. The flexible logit-mixed logit estimates provide evidence of important heterogeneity in preferences: whereas most of the population has a positive –albeit rather low– valuation of smart energy products and services, there is a considerable percentage of customers with negative perceptions.  more » « less
Award ID(s):
1632124
PAR ID:
10126108
Author(s) / Creator(s):
Date Published:
Journal Name:
Proceedings of the 24th Annual Conference of the European Association of Environmental and Resource Economists
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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