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Household Response to Incentive Payments for Load Shifting: A Japanese Time-of-Day Electricity Pricing Experiment

Author

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  • Isamu Matsukawa
  • Hiroshi Asano
  • Hitoshi Kakimoto

Abstract

We measure the effect of incentive payments on residential time-of-day (TOD) electricity demand in summer, using data from a residential TOD electricity pricing experiment in the Kyushu region of southern Japan. During the experiment, participating households could receive incentive payments if they reduce their peak usage share. Results based on an econometric model indicate that households have shifted their electricity usage from peak to off-peak periods in response to the incentive payment, but the effect of the incentive payment on load shifting was modest.

Suggested Citation

  • Isamu Matsukawa & Hiroshi Asano & Hitoshi Kakimoto, 2000. "Household Response to Incentive Payments for Load Shifting: A Japanese Time-of-Day Electricity Pricing Experiment," The Energy Journal, , vol. 21(1), pages 73-86, January.
    • Handle: RePEc:sae:enejou:v:21:y:2000:i:1:p:73-86
    DOI: 10.5547/ISSN0195-6574-EJ-Vol21-No1-3
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    References listed on IDEAS

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    1. Mountain, Dean C & Lawson, Evelyn L, 1992. "A Disaggregated Nonhomothetic Modeling of Responsiveness to Residential Time-of-Use Electricity Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 181-207, February.
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    3. Herriges, Joseph A. & Caves, Douglas W. & Kuester, K. A., 1989. "Load Shifting Under Voluntary Residential Time-Of-Use Rates," Staff General Research Papers Archive 10791, Iowa State University, Department of Economics.
    4. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1987. "Neoclassical Model of Consumer Demand with Identically Priced Commodities; And An Application to Time of Use Electricity Pricing," Staff General Research Papers Archive 10793, Iowa State University, Department of Economics.
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