Opinion Dynamics and Social Incentives Applied to Demand Response Programs

Abstract

This paper presents the formation of non-monetary incentives for social systems, which may appropriately complement the traditional use of financial incentives. Social incentives are modeled using opinion dynamics. The proposed incentives can be used in diverse systems, and we present an application to electric energy demand response programs, where consumers, represented as a stochastic bottom-up consumption model, have an initial opinion reflecting their degree of acceptance of a certain demand response program. With the application of social incentives via opinion dynamics, consumers have a final opinion with a potential of up to 22% in power reduction and 20% in average energy savings due to demand response strategies.