TY - JOUR

T1 - Pricing decisions in peer-to-peer and prosumer-centred electricity markets

T2 - Experimental analysis in Germany and the United Kingdom

AU - Hahnel, Ulf J.J.

AU - Fell, Michael J.

N1 - Publisher Copyright: © 2022 The Authors

PY - 2022/7

Y1 - 2022/7

N2 - Prosumer-centred electricity market models such as peer-to-peer communities can enable optimized supply and demand of locally generated electricity as well as an active participation of citizens in the energy transition. An important element of active participation is the improved ability of community members to identify and choose who they transact with in a much more granular way than is usual. Despite this key novelty and the social core of prosumer-centred markets, little is known about how citizens would trade with different actors involved in the system. This article reports a preregistered cross-national experiment investigating individual trading preferences in a peer-to-peer community with a variety of private and non-private trading actors. The data from the United Kingdom (n = 441) and Germany (n = 440) shows that set buying and selling prices strongly vary, pointing to three systematically different trading strategies that individuals apply as a function of involved trading actor. Findings moreover reveal that trading decisions are determined by individuals’ political orientation, place attachment, and climate change beliefs as well as individual differences in trust in the involved trading actor. Finally, the results illustrate high consistency in trading preferences across nations. However, nation-level differences emerged when decisions were made publicly visible, emphasising the need to consider context-effects in peer-to-peer system design. The findings have implications for the development of prosumer-centred energy models and the design of interventions to increase citizen participation across national contexts.

AB - Prosumer-centred electricity market models such as peer-to-peer communities can enable optimized supply and demand of locally generated electricity as well as an active participation of citizens in the energy transition. An important element of active participation is the improved ability of community members to identify and choose who they transact with in a much more granular way than is usual. Despite this key novelty and the social core of prosumer-centred markets, little is known about how citizens would trade with different actors involved in the system. This article reports a preregistered cross-national experiment investigating individual trading preferences in a peer-to-peer community with a variety of private and non-private trading actors. The data from the United Kingdom (n = 441) and Germany (n = 440) shows that set buying and selling prices strongly vary, pointing to three systematically different trading strategies that individuals apply as a function of involved trading actor. Findings moreover reveal that trading decisions are determined by individuals’ political orientation, place attachment, and climate change beliefs as well as individual differences in trust in the involved trading actor. Finally, the results illustrate high consistency in trading preferences across nations. However, nation-level differences emerged when decisions were made publicly visible, emphasising the need to consider context-effects in peer-to-peer system design. The findings have implications for the development of prosumer-centred energy models and the design of interventions to increase citizen participation across national contexts.

KW - Cross-national research

KW - Digitalisation

KW - Energy communities

KW - Peer-to-peer actor

KW - Peer-to-peer trading

KW - Place attachment

KW - Political orientation

KW - Price setting

KW - Trading decisions

KW - Trust

KW - Psychology

UR - http://www.scopus.com/inward/record.url?scp=85129470931&partnerID=8YFLogxK

U2 - 10.1016/j.rser.2022.112419

DO - 10.1016/j.rser.2022.112419

M3 - Journal articles

AN - SCOPUS:85129470931

VL - 162

JO - Renewable and Sustainable Energy Reviews

JF - Renewable and Sustainable Energy Reviews

SN - 1364-0321

M1 - 112419

ER -