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Time-of-use pricing and electricity demand response: evidence from a sample of Italian industrial customers

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  • Graziano Abrate

Abstract

The introduction of real time pricing in many wholesale market as well as the liberalisation process involving the retail market poses the attention over the measurement of demand response to time differentiated price signals. This paper shows an example of how to estimate elasticities of substitution across time using a sample of Italian industrial customers facing time-of-use (TOU) pricing schemes. The model involves the estimation of a nested constant elasticity of substitution (CES) input demand function, which allows estimating substitutability of electricity usage across hourly intervals within a month and across different months.

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File URL: http://www.inderscience.com/link.php?id=20037
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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Applied Management Science.

Volume (Year): 1 (2008)
Issue (Month): 1 ()
Pages: 21-40

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Handle: RePEc:ids:injams:v:1:y:2008:i:1:p:21-40

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Web page: http://www.inderscience.com/browse/index.php?journalID=286

Related research

Keywords: electricity market; time-of-use pricing; substitution elasticity; retail competition; electricity demand; Italy; industrial customers; real time pricing; electricity usage.;

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