AnWENDE - Making Electricity Prices More Flexible in the Face of Rising CO2 Prices: Distributional Effects and Solution Strategies - Subproject: Behavioral Economic Analysis of Acceptance, Distributional Effects, and Use of Dynamic Electricity Rates at th
Dynamic electricity rates and variable grid fees are intended to stimulate electrification in the residential sector, while starting in 2028, the European Emissions Trading System (ETS2) will make fossil fuel heating more expensive. It is unclear which households will benefit from flexible prices and which—such as low-income households and renters—will bear a disproportionate burden. The AnWENDE consortium project is investigating how dynamic electricity rates and variable grid fees can be designed in a socially equitable manner in conjunction with CO2 pricing. As the consortium leader, the RWI is leading the subproject on the behavioral economic analysis of acceptance, distributional effects, and usage of dynamic electricity rates at the household level. Using household surveys and experimental methods, the project assesses the level of information, preferences, and acceptance. Microsimulations based on current household data quantify the cost burdens and relief effects for different household groups. The results will be incorporated into practical recommendations for policymakers, energy suppliers, and the housing sector, in close coordination with the industry partners.
Publications
Project start:
01. November 2026
Project end:
31. October 2029
Project management:
Dr. Kathrin Kaestner
Project staff:
Sven Hansteen,
Dr. Jana Eßer
Project partners:
Öko-Institut e.V.,
Fraunhofer-Institut für System- und Innovationsforschung,
Green Planet Energy eG,
LEG Immobilien SE
Funding:
Bundesministerium für Wirtschaft und Energie