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Energies 2017, 10(6), 768; doi:10.3390/en10060768

A Behavioral Economics Approach to Residential Electricity Consumption

1
Department of Electricity and Materials, Lactec Institutes, Curitiba 81530-180, Brazil
2
Department of Electrical Engineering, Federal University of Parana, Curitiba 82590-300, Brazil
3
Department of Economics, Federal University of Parana, Curitiba 80210-170, Brazil
4
Gnarus Institute, Itajuba 37500-052, Brazil
*
Author to whom correspondence should be addressed.
Academic Editor: Pierluigi Siano
Received: 20 April 2017 / Revised: 27 May 2017 / Accepted: 29 May 2017 / Published: 1 June 2017
(This article belongs to the Special Issue Innovative Methods for Smart Grids Planning and Management)
View Full-Text   |   Download PDF [2311 KB, uploaded 1 June 2017]   |  

Abstract

Consumer behavior is complex and is difficult to represent in traditional economic theories of decision-making. This paper focuses on the development of an agent-based approach to analyze people’s behavior in consuming electricity using a behavioral economics framework, where the consumer is the main agent of power systems. This approach may bring useful insights for distribution companies and regulatory agencies, helping to shift thinking to a more user-centric approach. The emergent properties of electricity consumption are modeled by the means of consumer’s heuristics, taking into account the electricity price, consumer’s satisfaction level, willingness to invest in new technologies, social interactions, and marketing strategies by the power utility. Analysis on the emergent behavior of this approach through simulation studies showed that it is indeed valuable, as does not require in-depth data of all details on human behavior. However, it contributes to the understanding of relations among various objects involved in electricity consumption. View Full-Text
Keywords: agent-based modeling; complex systems; consumer behavior; economics; demand-side management; smart grids agent-based modeling; complex systems; consumer behavior; economics; demand-side management; smart grids
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MDPI and ACS Style

Siebert, L.C.; Sbicca, A.; Aoki, A.R.; Lambert-Torres, G. A Behavioral Economics Approach to Residential Electricity Consumption. Energies 2017, 10, 768.

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