Electricity price and habits: Which would affect household electricity consumption?

This research analyzes the effects of electricity prices and habits on electricity consumption behavior, which is of significance for identifying the mechanism of electricity consumption behavior. We use economic statistics and data from 3,320 questionnaires to conduct the research. Based on theoretical and empirical models, we find that the effect of electricity prices on residential electricity consumption is not significant. Habits are an important factor affecting residents’ electricity consumption. By calculating the electricity-saving potential of habits, we found that compared with residents with electricity saving habits, residents without electricity-saving habits consume 15.54 kWh more electricity every month on average. The electricity saving potential of residents without electricity-saving habits is 6.9%. Habits are a more important factor that affects residents’ electricity consumption behavior. It is of significance to make policies to reduce electricity consumption from the perspective of residents' habits rather than the electricity price.