IDEAS home Printed from https://ideas.repec.org/a/kap/regeco/v20y2001i3p249-67.html
   My bibliography  Save this article

Household Response to Optional Peak-Load Pricing of Electricity

Author

Listed:
  • 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

Suggested Citation

  • Matsukawa, Isamu, 2001. "Household Response to Optional Peak-Load Pricing of Electricity," Journal of Regulatory Economics, Springer, vol. 20(3), pages 249-267, November.
  • Handle: RePEc:kap:regeco:v:20:y:2001:i:3:p:249-67
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0922-680X/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Armstrong, Mark & Vickers, John, 1993. "Price Discrimination, Competition and Regulation," Journal of Industrial Economics, Wiley Blackwell, vol. 41(4), pages 335-359, December.
    2. repec:ccp:journl:v:53:y:2000:i:3:p:161-175 is not listed on IDEAS
    3. Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, Elsevier.
    4. Armstrong, Mark & Doyle, Chris & Vickers, John, 1996. "The Access Pricing Problem: A Synthesis," Journal of Industrial Economics, Wiley Blackwell, vol. 44(2), pages 131-150, June.
    5. Dieter Bös & Lorenz Nett, 1990. "Privatization, price regulation, and market entry an asymmetric multistage Duopoly model," Journal of Economics, Springer, vol. 51(3), pages 221-257, October.
    6. Alberto Iozzi & Marco Fioramanti, 2004. "Strategic Choice of the Price Structure and Entry Deterrence Under Price Cap Regulation," Bulletin of Economic Research, Wiley Blackwell, vol. 56(4), pages 333-352, October.
    7. Armstrong, Mark & Vickers, John, 2000. "Multiproduct Price Regulation under Asymmetric Information," Journal of Industrial Economics, Wiley Blackwell, vol. 48(2), pages 137-160, June.
    8. Alberto Iozzi, 2001. "Strategic pricing and entry deterrence under price-cap regulation," Journal of Economics, Springer, vol. 74(3), pages 283-300, October.
    9. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, January.
    10. John Vickers, 2005. "Abuse of Market Power," Economic Journal, Royal Economic Society, vol. 115(504), pages 244-261, June.
    11. Otero, Jesus & Waddams Price, Catherine, 2001. "Price Discrimination, Regulation and Entry in the UK Residential Electricity Market," Bulletin of Economic Research, Wiley Blackwell, vol. 53(3), pages 161-175, July.
    12. Varian, Hal R., 1989. "Price discrimination," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 10, pages 597-654 Elsevier.
    13. Anton, James J. & Vander Weide, James H. & Vettas, Nikolaos, 2002. "Entry auctions and strategic behavior under cross-market price constraints," International Journal of Industrial Organization, Elsevier, vol. 20(5), pages 611-629, May.
    14. Ireland, Norman J, 1992. "On the Welfare Effects of Regulating Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 237-248, September.
    15. Mark Armstrong & John Vickers, 1991. "Welfare Effects of Price Discrimination by a Regulated Monopolist," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 571-581, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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. Torgeir Ericson, 2006. "Time-differentiated pricing and direct load control of residential electricity consumption," Discussion Papers 461, Statistics Norway, Research Department.
    4. 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.
    5. Ohler, Adrienne M. & Billger, Sherrilyn M., 2014. "Does environmental concern change the tragedy of the commons? Factors affecting energy saving behaviors and electricity usage," Ecological Economics, Elsevier, vol. 107(C), pages 1-12.
    6. Kazutoshi Tsuda & Michinori Uwasu & Keishiro Hara & Yukari Fuchigami, 2017. "Approaches to induce behavioral changes with respect to electricity consumption," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 7(1), pages 30-38, March.
    7. Thorsnes, Paul & Williams, John & Lawson, Rob, 2012. "Consumer responses to time varying prices for electricity," Energy Policy, Elsevier, vol. 49(C), pages 552-561.
    8. 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.
    9. Valeria Di Cosmo, Sean Lyons, and Anne Nolan, 2014. "Estimating the Impact of Time-of-Use Pricing on Irish Electricity Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    10. Takanori Ida & Wenjie Wang, 2014. "A Field Experiment on Dynamic Electricity Pricing in Los Alamos:Opt-in Versus Opt-out," Discussion papers e-14-010, Graduate School of Economics Project Center, Kyoto University.
    11. Lang, Corey & Okwelum, Edson, 2015. "The mitigating effect of strategic behavior on the net benefits of a direct load control program," Energy Economics, Elsevier, vol. 49(C), pages 141-148.
    12. 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.
    13. Torgeir Ericson, 2006. "Households' self-selection of a dynamic electricity tariff," Discussion Papers 446, Statistics Norway, Research Department.
    14. 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.
    15. Ericson, Torgeir, 2011. "Households' self-selection of dynamic electricity tariffs," Applied Energy, Elsevier, pages 2541-2547.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:20:y:2001:i:3:p:249-67. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.