Abstract
Disconnect between the escalating costs of energy sources and the corresponding adjustments in electricity tariffs has become increasingly apparent in South Korea. When electricity prices are not cost-reflecting, this may distort electricity consumers’ behaviors and increase operational risks of electricity companies. Thus, it is important to make electricity tariffs flexible enough to absorb cost fluctuation and to examine consumer preferences on cost-reflective electricity pricing. To this end, we conduct a randomized survey experiment to explore potential information interventions to enhance consumers’ willingness to accept cost-reflective electricity tariffs. Furthermore, a conjoint experiment is supplemented to identify consumer preferences on the various attributes of cost-reflective electricity pricing.