Behavioral aspects of regulation: A discussion on switching and demand response in Turkish electricity market

Date

2016-10-01

Author

Sirin, Selahattin Murat
Gönül, Mustafa Sinan

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

130
views

0
downloads

Electricity sector has been transformed from state-owned monopolistic utilities to competitive markets with an aim to promote incentives for improving efficiency, reducing costs and increasing service quality to customers. One of the cardinal assumptions of the liberalized and competitive electricity markets is the rational actor, and decision-makers are assumed to make the best decisions that maximize their utility. However, a vast literature on behavioral economics has shown the weakness of economic theory in explaining and predicting individuals' decision-making behavior. This issue is quite important for competition in electricity markets in which consumers' preferences have a significant role. Despite its importance, this issue has almost been neglected in Turkey, which has taken major steps in electricity sector restructuring. Therefore, this paper aims to examine switching and demand response behavior in Turkish electricity market by using multiple correspondence and panel data analysis, and findings are discussed in light of the neoclassical and behavioral economics literature. Analyses' results show that consumers' switching and demand response behavior is consistent with the neoclassical literature to some extent; however, behavioral factors are also affecting consumers' decisions. Furthermore, there are systemic problems that hinder effective functioning of the electricity market and restrict competition.

Subject Keywords

General Energy, Management, Monitoring, Policy and Law

URI

https://hdl.handle.net/11511/57381

Journal

ENERGY POLICY

DOI

https://doi.org/10.1016/j.enpol.2016.08.005

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

Variable renewable energy technologies in the Turkish electricity market: Quantile regression analysis of the merit-order effect Sirin, Selahattin Murat; Yılmaz, Berna Nisa (Elsevier BV, 2020-09-01) The share of variable renewable energy sources in power supply has increased significantly in many countries; however, this increase has also created problems in electricity markets. While the average day-ahead market price has declined in several markets (the merit-order effect), the remuneration mechanisms in some countries have to be revised due to the surge in financial costs. Yet, further research is needed to understand the implications of the merit-order effect for remuneration mechanisms thoroughly....
The merit order effect of wind and river type hydroelectricity generation on Turkish electricity prices Acar, Berkan; Selcuk, Orhun; Dastan, Seyit Ali (Elsevier BV, 2019-09-01) The environmental concerns and dependency on gas imports push Turkish policy makers to find ways of increasing the share of renewable sources in electricity generation. Providing incentives for renewable energy in the form of feed-in-tariffs is one of the measures to achieve this goal. Basing on the data of Turkish electricity market operator, we quantified the magnitude of the price effects of wind and river type hydro generations on hourly average of day-ahead prices. We find that wind and river type hydr...
Forecasting production of fossil fuel sources in Turkey using a comparative regression and ARIMA model Ediger, Volkan S.; Akar, Sertac; Ugurlu, Berkin (Elsevier BV, 2006-12-01) This study aims at forecasting the most possible curve for domestic fossil fuel production of Turkey to help policy makers to develop policy implications for rapidly growing dependency problem on imported fossil fuels. The fossil fuel dependency problem is international in scope and context and Turkey is a typical example for emerging energy markets of the developing world. We developed a decision support system for forecasting fossil fuel production by applying a regression, ARIMA and SARIMA method to the ...
Numerical analysis of an organic Rankine cycle under steady and variable heat input Bamgbopa, Musbaudeen O.; Uzgoren, Eray (Elsevier BV, 2013-07-01) This paper develops a strategy to maintain steady operation of an organic Rankine cycle (ORC) by adjusting evaporator flow rates in relation to the available thermal energy. ORC unit under investigation uses R245fa as the working fluid, for which a regression based approach was implemented to evaluate its state properties. Steady and transient models for unit's subcomponents (pump, evaporator, expander and condenser) were developed. Heat source is considered as solar heated water between 80 degrees C and 95...
Are global warming and economic growth compatible? Evidence from five OPEC countries? Sarı, Ramazan; Soytaş, Uğur (Elsevier BV, 2009-10-01) In this paper, we investigate the relationship between carbon emissions, income, energy and total employment in selected OPEC countries for the period of 1971-2002. We mainly focus on the link between energy use and income. Employing the autoregressive distributed lag (ARDL) approach, we find that there is a cointegrating relationship between the variables in Saudi Arabia only. The long run forcing variables for income are determined to be employment and energy for Saudi Arabia. In Indonesia, Algeria, Niger...

Citation Formats

S. M. Sirin and M. S. Gönül, “Behavioral aspects of regulation: A discussion on switching and demand response in Turkish electricity market,” ENERGY POLICY, pp. 591–602, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/57381.