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Load Management Programs, Cross-Subsidies and Transaction Costs: The Case of Self-Rationing

Author

Listed:
  • Roland, M.
  • Bernard, J.T.

Abstract

Load management programs are used by electric utilities to reduce the amount of reserve capacity that is required in order to meet peak consumption. Although these programs are generally offered to costumers as alternatives to regular service, economic models of their allocative efficiency have always been based on the implicit assumption that they were the only services available. This paper presents a model in which the consumer has the option to subscribe to regular service or to participate in a particular load management program, called self- rationing.

Suggested Citation

  • Roland, M. & Bernard, J.T., 1996. "Load Management Programs, Cross-Subsidies and Transaction Costs: The Case of Self-Rationing," Papers 9617, Laval - Recherche en Energie.
    • Handle: RePEc:fth:lavaen:9617
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    Citations

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    Cited by:

    1. Jacopo Torriti & Philipp Grunewald, 2014. "Demand Side Response: Patterns in Europe and Future Policy Perspectives under Capacity Mechanisms," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    2. Evens Salies, 2012. "Real-time pricing when consumers have saving costs," Working Papers hal-01070292, HAL.
    3. repec:spo:wpecon:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
    4. Salies, Evens, 2013. "Real-time pricing when some consumers resist in saving electricity," Energy Policy, Elsevier, vol. 59(C), pages 843-849.
    5. Anatoly P. Dzyuba & Irina A. Solovyeva, 2020. "Demand-side management mechanisms in industry," Journal of New Economy, Ural State University of Economics, vol. 21(3), pages 175-195, October.
    6. repec:spo:wpmain:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
    7. Olkkonen, Ville & Rinne, Samuli & Hast, Aira & Syri, Sanna, 2017. "Benefits of DSM measures in the future Finnish energy system," Energy, Elsevier, vol. 137(C), pages 729-738.
    8. Heggie, Alastair & Eager, Dan & McKinnon, Ken & Van Der Weijde, Adriaan H., 2018. "Power rationing in a long-term power shortage," Energy Policy, Elsevier, vol. 121(C), pages 202-210.
    9. Hunt., Julian David & Stilpen, Daniel & de Freitas, Marcos Aurélio Vasconcelos, 2018. "A review of the causes, impacts and solutions for electricity supply crises in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 208-222.
    10. Luiz Maurer & Mario Pereira & Jose Rosenblatt, 2005. "Implementing Power Rationing in a Sensible Way : Lessons Learned and International Best Practices," World Bank Publications - Reports 18066, The World Bank Group.

    More about this item

    Keywords

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    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

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