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Household electricity contract and provider switching in the EU

: Schleich, Joachim; Faure, Corinne; Gassmann, Oliver

Fulltext urn:nbn:de:0011-n-4736550 (839 KByte PDF)
MD5 Fingerprint: f1a21a402f09812a26256b40286497f1
Created on: 21.11.2017

Karlsruhe: Fraunhofer ISI, 2017, 25 pp.
Working Paper Sustainability and Innovation, S 14/2017
European Commission EC
H2020; 649875; BRISKEE
Behavioural Response to Investment Risks in Energy Efficiency
Report, Electronic Publication
Fraunhofer ISI ()
electricity supplier switching; inertia; liberalization; time preference; risk preference

Using a representative sample of more than 11,000 households from eight European countries, this paper empirically studies the factors related to household electricity contract switching by distinguishing between households that switched contracts but stayed with the same supplier (internal switching) from those that switched to a new supplier (external switching). The econometric analysis includes a wide range of individual preferences, structural factors, and socio-demographic characteristics; in particular, it is the first paper to explicitly explore the role of time and risk preferences on switching behaviors. The main results suggest that internal and external switching are not related to the same factors, that risk and time preferences affect switching behaviors, and that renters are less likely to switch than homeowners.