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Residential response to voluntary time-of-use electricity rates

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  • Mostafa Baladi, S.
  • Herriges, Joseph A.
  • Sweeney, Thomas J.

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.

Suggested Citation

  • Mostafa Baladi, S. & Herriges, Joseph A. & Sweeney, Thomas J., 1998. "Residential response to voluntary time-of-use electricity rates," Resource and Energy Economics, Elsevier, vol. 20(3), pages 225-244, September.
  • Handle: RePEc:eee:resene:v:20:y:1998:i:3:p:225-244
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    Cited by:

    1. Hobman, Elizabeth V. & Frederiks, Elisha R. & Stenner, Karen & Meikle, Sarah, 2016. "Uptake and usage of cost-reflective electricity pricing: Insights from psychology and behavioural economics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 455-467.
    2. Shariatzadeh, Farshid & Mandal, Paras & Srivastava, Anurag K., 2015. "Demand response for sustainable energy systems: A review, application and implementation strategy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 343-350.
    3. 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.
    4. 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.
    5. Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers 461, Statistics Norway, Research Department.
    6. repec:eee:rensus:v:80:y:2017:i:c:p:367-379 is not listed on IDEAS
    7. Makena Coffman & Paul Bernstein & Derek Stenclik & Sherilyn Wee & Aida Arik, 2018. "Integrating Renewable Energy with Time Varying Pricing," Working Papers 2018-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    8. Bradley, Peter & Coke, Alexia & Leach, Matthew, 2016. "Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider," Energy Policy, Elsevier, vol. 98(C), pages 108-120.
    9. 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, Statistics Norway, Research Department.
    10. Gaiser, Kyle & Stroeve, Pieter, 2014. "The impact of scheduling appliances and rate structure on bill savings for net-zero energy communities: Application to West Village," Applied Energy, Elsevier, vol. 113(C), pages 1586-1595.
    11. Qiu, Yueming & Colson, Gregory & Wetzstein, Michael E., 2017. "Risk preference and adverse selection for participation in time-of-use electricity pricing programs," Resource and Energy Economics, Elsevier, vol. 47(C), pages 126-142.
    12. Thorsnes, Paul & Williams, John & Lawson, Rob, 2012. "Consumer responses to time varying prices for electricity," Energy Policy, Elsevier, vol. 49(C), pages 552-561.
    13. repec:aen:journl:ej38-6-pon is not listed on IDEAS
    14. Boßmann, Tobias & Eser, Eike Johannes, 2016. "Model-based assessment of demand-response measures—A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1637-1656.
    15. Steve A. Fenrick, Lullit Getachew, Chris Ivanov, and Jeff Smith, 2014. "Demand Impact of a Critical Peak Pricing Program: Opt-in and Opt-out Options, Green Attitudes and Other Customer Characteristics," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    16. Torgeir Ericson, 2006. "Households' self-selection of a dynamic electricity tariff," Discussion Papers 446, Statistics Norway, Research Department.
    17. Xue, Xue & Wang, Shengwei & Yan, Chengchu & Cui, Borui, 2015. "A fast chiller power demand response control strategy for buildings connected to smart grid," Applied Energy, Elsevier, vol. 137(C), pages 77-87.
    18. 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.
    19. Ericson, Torgeir, 2011. "Households' self-selection of dynamic electricity tariffs," Applied Energy, Elsevier, vol. 88(7), pages 2541-2547, July.
    20. Ren, Zhengen & Grozev, George & Higgins, Andrew, 2016. "Modelling impact of PV battery systems on energy consumption and bill savings of Australian houses under alternative tariff structures," Renewable Energy, Elsevier, vol. 89(C), pages 317-330.
    21. repec:eee:appene:v:222:y:2018:i:c:p:244-256 is not listed on IDEAS

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