Opt-in field experiments with multiple dynamic pricing for energy savings

Last registered on August 24, 2023

Pre-Trial

Trial Information

General Information

Title
Opt-in field experiments with multiple dynamic pricing for energy savings
RCT ID
AEARCTR-0011940
Initial registration date
August 17, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
August 24, 2023, 4:56 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Region

Primary Investigator

Affiliation
Kyoto University of Advanced Science

Other Primary Investigator(s)

PI Affiliation
Kyoto University
PI Affiliation
Kyoto University

Additional Trial Information

Status
In development
Start date
2023-08-22
End date
2023-09-11
Secondary IDs
Prior work
This trial is based on or builds upon one or more prior RCTs.
Abstract
To study the impact of multiple Dynamic Pricing (DP) on energy-saving behavior. We also aim to analyze the opt-in rate in terms of whether different types of DPs have different opt-in rates.
External Link(s)

Registration Citation

Citation
Ida, Takanori, Takunori Ishihara and Daido Kido. 2023. "Opt-in field experiments with multiple dynamic pricing for energy savings." AEA RCT Registry. August 24. https://doi.org/10.1257/rct.11940-1.0
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
Intervention Start Date
2023-08-22
Intervention End Date
2023-08-31

Primary Outcomes

Primary Outcomes (end points)
Electricity consumption
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
【Survey 1】
In conjunction with a Web-based research company, we surveyed monitors to obtain household demographics such as gender, age, and income of household members and their use of home appliances. The survey was conducted online through a Web-based research company. At the beginning of the study, we asked them for their consent to participate in this research experiment. Only those who consented to participate will be included in the following experiments. In addition, we will pay a reward to the participants of the experiment for their participation in this survey and the following experiments and surveys.

[Experiment]
We randomly divided the monitors of a survey company (3,300 households) that obtained consent to participate in the experiment in Survey 1 above into four groups. Details of each group are as follows.

1 Untreated group:
No intervention.
2 Opt-in treatment group 1 (Real Time Pricing; RTP):
For those consumers who choose to take the treatment, we offer a price equal to wholesale at every hour of the day (24 frames), reflecting the previous day's price.
3 Opt-in treatment group 2 (variable Critical Peak Pricing; v-CPP):
For those consumers who choose to take the treatment, we offer peak and off-peak prices dependent on the previous day's wholesale price.
3.1 If the wholesale price is less than 40 yen, peak and off-peak prices will be 30 yen.
3.2 If the wholesale price is between 40 yen and 62.5 yen, the peak price will be 50 yen, and the off-peak price will be 17 yen.
3.3 If the wholesale price is 62.5 yen or more but less than 87.5 yen, the peak price will be 75 yen, and the off-peak price will be 17 yen.
3.4 If the wholesale price is 87.5 yen or more, the peak price will be 100 yen, and the off-peak price will be 17 yen.
4 Opt-in treatment group 3 (Time-of-Use; TOU):
For those consumers who choose to take the treatment, we offer the peak price at 50 yen and the off-peak price at 17 yen, independent of the previous day's wholesale price.

We will obtain participants' electricity consumption data (HEMS data: July-August 2023) for the event period and the pre-event period through the monitoring company; HEMS data is electricity consumption measured at 30-minute intervals in each household through smart meters installed in each household.
Participants will be eligible to receive DPs for seven days, from August 22 to 25 and August 29 to 31, 2023. Participants assigned to each treatment group, excluding the untreated group, will be notified in advance of the event period, intervention details, and payment terms for rewards, and will each choose whether or not they wish to receive the treatment. Participants in each treatment group are then notified of the price schedule for the following day by the evening before each event date.
The payment terms for the rewards in this experiment are as follows: the difference between the payment during the event period calculated at the base price (30 yen per kWh) and the payment during the event period calculated at the DP realized in each treatment group will be the reward due to electricity savings (maximum: 2,000 yen). However, suppose the difference between the payment during the event period calculated with the base price and the payment during the event period calculated with each DP is negative. In that case, the reward for electricity saving will be zero.

[Survey 2]
For those assigned to the untreated group or the treatment group that did not opt-in for each DP, we will survey them if they are home or not home on a particular day (September 10 and 11). We will reward respondents with 300 yen for this survey.
Experimental Design Details
Randomization Method
randomization done in office by a computer
Randomization Unit
household
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
N/A
Sample size: planned number of observations
3,300
Sample size (or number of clusters) by treatment arms
825 Untreated group, 825 Opt-in treatment group 1, 825 Opt-in treatment group 2, 825 Opt-in treatment group 3
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
Committee on Experimental Ethics, Inter-Graduate School Program for Sustainable Development and Survivable Societies, Kyoto University, Japan.
IRB Approval Date
2023-08-12
IRB Approval Number
202310

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials