Study of Residential Power Demand Behavior from a Consumer Psychological Perspective

This paper presents an empirical analysis of the licensing effect in residential energy consumption, examining how environmentally conscious behavior may inadvertently lead to increased electricity usage. Leveraging smart meter data and survey responses from 150 households in a semi-urban area of South Dakota, the study investigates the relationship between environmental self-identification and consumption patterns. Results indicate that self-identified supporters of renewable energy exhibit higher electricity usage during periods of temperature extremes, consistent with compensatory behavior. Conversely, households aligned with fossil fuel preferences demonstrate more stable demand profiles across varying conditions. These findings suggest that ideological orientation significantly influences residential energy use, challenging the assumption that pro-environmental attitudes necessarily correlate with conservation. Furthermore, the study discusses implications for Demand Side Management (DSM), highlighting the limitations of uniform DSM programs. The observed behavioral heterogeneity underscores the need for DSM strategies that incorporate cognitive and ideological dimensions, enabling utilities and policymakers to design more effective, targeted interventions aimed at enhancing energy efficiency and grid reliability.