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Drivers of residential participation in time-varying electricity pricing: Evidence from U.S. utilities

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  • Li, Dmitriy
  • Bae, Jeong Hwan
  • Anh Hoang, Thi Lan

Abstract

This study investigates the determinants of residential participation in time-varying electricity pricing (TVP) programs across U.S. utilities from 2013 to 2022. Using utility-level panel data and a fractional response logit model with a control function approach, the analysis estimates the effects of specific pricing mechanisms—Critical Peak Pricing/Variable Peak Pricing (CPP/VPP), Critical Peak Rebates (CPR), Real-Time Pricing (RTP), and combined pricing offerings—on time-varying pricing participation rates (TVPPR). The results highlight the strong positive influence of CPR and bundled pricing schemes on enrollment, while RTP appears to deter participation. Advanced Metering Infrastructure (AMI), electricity use, and state-level CO2 emissions also significantly affect participation. However, because only a small number of utilities adopted some tariff types, the estimated marginal effects should be interpreted with caution. The findings offer valuable policy guidance for expanding demand-side flexibility and enhancing the effectiveness of TVP programs in the residential electricity sector.

Suggested Citation

  • Li, Dmitriy & Bae, Jeong Hwan & Anh Hoang, Thi Lan, 2026. "Drivers of residential participation in time-varying electricity pricing: Evidence from U.S. utilities," Utilities Policy, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:juipol:v:101:y:2026:i:c:s095717872600069x
    DOI: 10.1016/j.jup.2026.102210
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