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Residential Response to Voluntary Time-Of-Use Electricity Rates

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Author Info

  • Herriges, Joseph A.
  • Baladi, S.
  • Sweeney, T.

Abstract

The response of residential households to voluntary Time-of-Use (TOU) electricity rates is estimated using data from a recent experiment at Midwest Power Systems of Iowa. The study's design allows us to examine both the participation decision and the customer's load pattern changes once the TOU rate structure was in effect. Substitution elasticities between on-peak and off-peak electricity usage are estimated and compared to those obtained in earlier mandatory programs, indicating whether program volunteers are more responsive to TOU pricing than the typical household. Attitudinal questionnaires allow us to examine the role of usage perceptions in program participation.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1233.

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Date of creation: 01 Jan 1998
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Publication status: Published in Resource and Energy Economics 1998, vol. 20 no. 3, pp. 225-244
Handle: RePEc:isu:genres:1233

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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References

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  1. Douglas W. Caves and Laurits R. Christensen, 1980. "Residential Substitution of Off-peak for Peak Electricity Usage under Time-of-Use Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
  2. Caves, Douglas W. & Christensen, Laurits R. & Herriges, Joseph A., 1984. "Consistency of residential customer response in time-of-use electricity pricing experiments," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 179-203.
  3. Park, Rolla Edward & Acton, Jan Paul, 1984. "Large business customer response to time-of-day electricity rates," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 229-252.
  4. Douglas W. Caves & Joseph A. Herriges & Kathleen A. Kuester, 1989. "Load Shifting Under Voluntary Residential Time-of-Use Rates," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 83-99.
  5. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1984. "The Consistency of the Residential Customer Response in Time-Of-Use Electricity Pricing Experiments," Staff General Research Papers 10798, Iowa State University, Department of Economics.
  6. Kohler, Daniel F. & Mitchell, Bridger M., 1984. "Response to residential time-of-use electricity rates : How transferable are the findings?," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 141-177.
  7. Aigner, Dennis J. & Leamer, Edward E., 1984. "Estimation of time-of-use pricing response in the absence of experimental data : An application of the methodology of data transferability," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 205-227.
  8. Train, Kenneth E & McFadden, Daniel L & Goett, Andrew A, 1987. "Consumer Attitudes and Voluntary Rate Schedules for Public Utilities," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 383-91, August.
  9. Hausman, Jerry A. & Trimble, John, 1984. "Appliance purchase and usage adaptation to a permanent time-of-day electricity rate schedule," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 115-139.
  10. Tishler, Asher, 1983. "The industrial and commercial demand for electricity under time-of-use pricing," Journal of Econometrics, Elsevier, vol. 23(3), pages 369-384, December.
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Cited by:
  1. 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.
  2. Andreas V. Stokke & Gerard L. Doorman & Torgeir Ericson, 2009. "An Analysis of a Demand Charge Electricity Grid Tariff in the Residential Sector," Discussion Papers 574, Research Department of Statistics Norway.
  3. Torgeir Ericson, 2006. "Households' self-selection of a dynamic electricity tariff," Discussion Papers 446, Research Department of Statistics Norway.
  4. Massimo, Filippini, 2011. "Short- and long-run time-of-use price elasticities in Swiss residential electricity demand," Energy Policy, Elsevier, vol. 39(10), pages 5811-5817, October.
  5. Davis, Alexander L. & Krishnamurti, Tamar & Fischhoff, Baruch & Bruine de Bruin, Wandi, 2013. "Setting a standard for electricity pilot studies," Energy Policy, Elsevier, vol. 62(C), pages 401-409.
  6. Ericson, Torgeir, 2011. "Households' self-selection of dynamic electricity tariffs," Applied Energy, Elsevier, vol. 88(7), pages 2541-2547, July.
  7. Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers 461, Research Department of Statistics Norway.

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