Consumer Response to Time Varying Prices for Electricity
AbstractWe report new experimental evidence of the household response to weekday differentials in peak and off-peak electricity prices. The data come from Auckland, New Zealand, where peak residential electricity consumption occurs in winter for heating. Peak/off-peak price differentials ranged over four randomly-selected groups from 1.0 to 3.5. On average, there was no response except in winter. In winter, participant households reduced electricity consumption by at least 10%, took advantage of lower off-peak prices but did not respond to the peak price differentials. Response varied with house and household size, time spent away from home, and whether water was heated with electricity.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 1116.
Length: 25 pages
Date of creation: Dec 2011
Date of revision: Dec 2011
Electricity pricing; Time of Use; Price elasticity;
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Nuevas evidencias empíricas sobre los smart meters
by Ana Ramos in Economics for Energy on 2012-11-16 09:42:00
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