Work

A Pareto Superior Incentive Scheme for Residential Electricity Conservation: A Case Study of Shenzhen City in China

Year: 2025

Type: article

Abstract: Shenzhen’s residential inclining tier rates are designed to encourage electricity conservation. However, the rates for customers with relatively low consumption fall below Shenzhen’s estimated marginal generation cost, leading to economically inefficient overconsumption. Therefore, we propose an incentive scheme with voluntary participation to promote residential electricity conservation. We further demonstrate that this scheme is Pareto superior, as its implementation can benefit participating customers without adversely affecting the electric utility or non-participating customers.

Source: Energy RESEARCH LETTERS

DOI: 10.46557/001c.151210

Authors: Kang Hua Cao, Yuk-Shing Cheng, Han Qi, Chi-Keung Woo

Institutions: Hong Kong Baptist University, Shenzhen University

Language: English

Topic: Smart Grid Energy Management

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDG: Affordable and clean energy

Open Access status: diamond

Funders: National Natural Science Foundation of China, Shenzhen University