Determinants of Willingness to Participate in Urban Incentive-Based Energy Demand-Side Response: An Empirical Micro-Data Analysis

Abstract

Demand-side management provides important opportunities to integrate renewable sources and enhance the flexibility of urban power systems. With the continuous advancement of the smart grid and electricity market reform, the potential for residential consumers to participate in energy demand response is significantly enhanced. However, not enough is known about the public perception of energy demand response, and how sociopsychological and external factors could affect public willingness to participate. This study investigates the public perception of and willingness to participate in urban energy demand response through a questionnaire survey and employs multiple linear regression models to explore the determinants of public willingness to participate. The results suggest that income level, energy-saving attitudes, behaviors, external motivation factors, and energy-saving technologies are the key factors that determine public willingness to participate. Although most respondents are willing to participate, the effects of monetary incentives are more significant than the effect of spiritual inducements, and respondents are more sensitive to compensation than to dynamic electricity prices. The further improvement of residential responsiveness requires continuous infrastructure building by technical support, public energy-saving awareness, and public perception of energy demand response. Policy implications are proposed to achieve a sufficient residential response from an aggressive policy framework and energy-saving behavioral guidance.