Behavioral Economics and Energy Market

Economists mainly focus on equipment cost, energy prices, and personal electricity consumption topics when they try to model the energy market. However, behavioral economics research on energy show that consumers fail to purchase energy efficient vehicles, appliances, and lighting, and they do not put energy saving as a priority. There are mainly three cognitive biases that may cause these behaviors: bounded rationality, bounded willpower, and bounded self-interest. This chapter review the empirical studies, mainly experiments that investigate effects of these biases on the household and workplace behavior in the energy market. Through reviewing, it tries to summarize the possible policies (providing real-time energy consumption information or using social norms) to increase energy efficiency and saving.


Smart grid applications and technologies in distribution systems
Pehlivanoğlu Gürbüz, Kübra; Sevaioğlu, Osman; Department of Electrical and Electronics Engineering (2019)
Smart grid control purposes to rise the percentage of energy production through alternative energy sources like renewable resources and to make consumers to be comprehended in grid actively, is realising importance day by day. Further to that it can help us employment opportunities and improving growth in addition to keep the power on at minimum cost to prosumers, while the participation is elucidated and enabled new products, service and markets, accommodating all generation and storage options and provide...
Energy consumption and GDP: causality relationship in G-7 countries and emerging markets
Soytaş, Uğur; Sarı, Ramazan (2003-01-01)
The causality relationship between energy consumption and income is a well-studied topic in energy economics. This paper studies the time series properties of energy consumption and GDP and reexamines the causality relationship between the two series in the top 10 emerging markets-excluding China due to lack of data-and G-7 countries. We discover bi-directional causality in Argentina, causality running from GDP to energy consumption in Italy and Korea, and from energy consumption to GDP in Turkey, France, G...
Numerical modeling and performance analysis of solar-powered ideal adsorption cooling systems
Taylan, Onur; Baker, Derek Keıth; Department of Mechanical Engineering (2010)
Energy consumption is continuously increasing around the world and this situation yields research to find sustainable energy solutions. Demand for cooling is one of the reasons of increasing energy demand. This research is focused on one of the sustainable ways to decrease energy demand for cooling which is the solar-powered adsorption cooling system. In this study, general theoretical performance trends of a solar-powered adsorption cooling system are investigated using TRNSYS and MATLAB. Effects of differ...
Energy efficiency and rebound effect for household gas consumption: evidence from Ankara
Yılmaz, Zehra İlknur; Sarı, Ramazan; Department of Earth System Science (2019)
Increasing energy demand and concerns about energy security and climate change have led to energy efficiency to become one of the important energy policy objectives in many countries. It is conceived that energy efficiency improvements will decrease energy consumption and CO2 emissions. However, actual efficiency savings are often less than projected savings because of consumer behavior. This concept is known as the rebound effect which is an important factor to be considered while estimating results of ene...
Dynamic correlations between oil prices and the stock prices of clean energy and technology firms: The role of reserve currency (US dollar)
KOCAARSLAN, BARIŞ; Soytaş, Uğur (2019-10-01)
There is increased interest in the dynamic relationships between the stock prices of clean energy and technology firms and oil prices in the literature. Existing works suggest a time-dependent link between them, but there is a gap of knowledge regarding the drivers of this time-dependent relationship. To contribute to this literature, we first identify dynamic conditional correlations (DCCs) between the prices of clean energy and technology stocks and oil prices to investigate the nature of these dynamic co...
Citation Formats
Ö. Özdemir, Behavioral Economics and Energy Market. 2019, p. 564.