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Household Response to Optional Peak-Load Pricing of Electricity

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  • Matsukawa, Isamu

Abstract

I investigate the impacts of voluntary time-of-day (TOD) rates on residential demand for electricity. My analysis is based on a sample of a survey, which provides cross-sectional data on electricity consumption and economic/demographic features for both TOD and non-TOD households in Japan. This information is used to develop an almost ideal demand system for the TOD electricity consumption during the summer. The results show that (1) household response to the high price of the peak period is relatively modest, and (2) the relative magnitudes of the price and selection effects depend on the ownership of water heaters. Copyright 2001 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 20 (2001)
Issue (Month): 3 (November)
Pages: 249-67

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Handle: RePEc:kap:regeco:v:20:y:2001:i:3:p:249-67

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Ahmad Faruqui & Sanem Sergici, 2010. "Household response to dynamic pricing of electricity: a survey of 15 experiments," Journal of Regulatory Economics, Springer, vol. 38(2), pages 193-225, October.
  2. Rob Lawson & Paul Thorsnes & John Williams, 2011. "Consumer Response to Time Varying Prices for Electricity," Working Papers 1116, University of Otago, Department of Economics, revised Dec 2011.
  3. Di Cosmo, Valeria & Lyons, Sean & Nolan, Anne, 2012. "Estimating the impact of time-of-use pricing on Irish electricity demand," MPRA Paper 39971, University Library of Munich, Germany.
  4. Ericson, Torgeir, 2011. "Households' self-selection of dynamic electricity tariffs," Applied Energy, Elsevier, vol. 88(7), pages 2541-2547, July.
  5. Pineau, Pierre-Olivier & Rasata, Hasina & Zaccour, Georges, 2011. "Impact of some parameters on investments in oligopolistic electricity markets," European Journal of Operational Research, Elsevier, vol. 213(1), pages 180-195, August.
  6. Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers 461, Research Department of Statistics Norway.
  7. Torgeir Ericson, 2006. "Households' self-selection of a dynamic electricity tariff," Discussion Papers 446, Research Department of Statistics Norway.
  8. Tanaka, Makoto & Ida, Takanori, 2013. "Voluntary electricity conservation of households after the Great East Japan Earthquake: A stated preference analysis," Energy Economics, Elsevier, vol. 39(C), pages 296-304.

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