A framework for measuring electricity price literacy: Application to South Korea

Abstract

Consumers’ knowledge of electricity prices and its effect on their behaviors have been widely studied, yet the comparison and generalization of these findings are challenging due to variations in definition and survey items. This paper proposes a comprehensive framework to assess Electricity Price Literacy by introducing a functional representation that encompasses various electricity pricing systems and categorizing into three knowledge domains to systematically organize previous literature's knowledge measures. To demonstrate the practicality of this framework, a survey was administered to a nationwide sample of 4214 electricity consumers in South Korea. The survey results highlight variations in electricity price literacy across different domains and reveal varying relationships between domain-specific knowledge and behaviors, thereby highlighting the need for a decomposed measure of price knowledge.