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An Asian energy retailer recently designed a new electricity product incorporating several innovative features.
These energy traders are not dealing with a singular wholesale gas or electricity product - but a myriad of gas and electricity "contracts" which are defined by the period within which the energy is to be delivered.
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We tested consumers' WTP for two different green electricity products and found WTP for these products to be about 15% above that for a non-green electricity tariff.
A product definition implemented in some electricity markets is used to unveil critical aspects that must be considered when electricity products are defined.
In liberalized electricity markets, residential customers can choose their preferred provider and select among a variety of different electricity products, including green power options.
Subsequently, the electricity products are divided into two categories according to the emissions per MW h and different electric power markets are set respectively.
Green electricity products are increasingly made available to consumers in many countries in order to address a number of environmental and social concerns.
We design an online interface that closely mimics the real market decision environment for electricity consumers in Western Australia and use an error component model to analyze consumers' choice of green electricity products and their commitment levels.
Mistrust of government by the households favour private providers in terms of WTP for both electricity products.
A nonparametric and a parametric model were employed to estimate WTP values for two electricity products; Grid Electricity (GE) which is largely provided by Government and Photovoltaic (PV) electricity which is provided by both government and other private service providers.
The company offers consumers and businesses the choice of clean electricity products from renewable sources such as wind and water, as well as a variety of carbon offset products.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com