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TRANSPOSE Working Paper No10: Der Einfluss von progressiven Tarifen auf den Stromkonsum in privaten Haushalten in Italien und Kalifornien

Christian Dehmel - 2011, 78 pages (Abstract: DE EN) (Download Paper)

Abstract
Italy is one of the few countries in Europe with long experience in offering a nationwide progressive tariff for the electricity consumption of private households. The price per kWh of consumed electricity increases with the growing amount of electricity consumed, pro-viding an incentive for keeping consumption levels low. Progressive tariffs on the electrici-ty market belong to a group of market-based interventions that influence consumer beha-vior through price signals. Electric supply companies in Italy are mandated to offer such a tariff by the governmental regulatory authority (AEEG). Such arrangements, which are sub-sumed as “Demand-Side-Management” (DSM), are addressing consumers‟ electricity con-sumption through the electricity supply companies.
In a case study of Italy, we study the initial reasons for implementing progressive tariffs in 1975, trace major alterations and analyze the adaptations associated with Italy‟s/the Eu-ropean Union‟s move towards a liberalized energy market. Likewise, we estimate the im-pact of the progressive tariffs on household electricity consumption. The results are com-pared with a similar case in California, revealing similarities and differences.
Two significant findings are that progressive tariffs do function well in the liberalized elec-tricity markets of Italy and California and that the progressive price element can be found in all different parts of the total rate of the price for electricity (transit fees, production, distribution and taxes), and is not hindering the competition in the electricity market. So-cial and energy related political interests seemed to be important functional conditions for the launch and implementation of progressive tariffs in the electricity sector, both in Italy and in California. Unfortunately, little reliable data for the consequences of progressive tariffs for the electricity consumption of private households in Italy and California is avail-able. Moreover, the data is hard to generate because of the highly confounded variables. Nevertheless, our research indicates a positive effect of progressive tariffs on the reduc-tion of private household electricity consumption and offers explanations for the existence of this effect.