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Residential Response to Voluntary Time-Of-Use Electricity Rates

  • Herriges, Joseph A.
  • Baladi, S.
  • Sweeney, T.

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.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1233.

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Date of creation: 01 Jan 1998
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Publication status: Published in Resource and Energy Economics 1998, vol. 20 no. 3, pp. 225-244
Handle: RePEc:isu:genres:1233
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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  1. Herriges, Joseph A. & Caves, Douglas W. & Kuester, K. A., 1989. "Load Shifting Under Voluntary Residential Time-Of-Use Rates," Staff General Research Papers 10791, Iowa State University, Department of Economics.
  2. Aigner, Dennis J. & Leamer, Edward E., 1984. "Estimation of time-of-use pricing response in the absence of experimental data : An application of the methodology of data transferability," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 205-227.
  3. Aigner, Dennis J & Ghali, Khalifa, 1989. "Self-Selection in the Residential Electricity Time-of-Use Pricing Experiments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S131-44, Supplemen.
  4. Caves, Douglas W. & Christensen, Laurits R. & Herriges, Joseph A., 1984. "Consistency of residential customer response in time-of-use electricity pricing experiments," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 179-203.
  5. Tishler, Asher, 1983. "The industrial and commercial demand for electricity under time-of-use pricing," Journal of Econometrics, Elsevier, vol. 23(3), pages 369-384, December.
  6. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1984. "The Consistency of the Residential Customer Response in Time-Of-Use Electricity Pricing Experiments," Staff General Research Papers 10798, Iowa State University, Department of Economics.
  7. Kohler, Daniel F. & Mitchell, Bridger M., 1984. "Response to residential time-of-use electricity rates : How transferable are the findings?," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 141-177.
  8. Dennis J. Aigner & Joseph G. Hirschberg, 1985. "Commercial/Industrial Customer Response to Time-Of-Use Electricity Prices: Some Experimental Results," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 341-355, Autumn.
  9. Park, Rolla Edward & Acton, Jan Paul, 1984. "Large business customer response to time-of-day electricity rates," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 229-252.
  10. Douglas W. Caves and Laurits R. Christensen, 1980. "Residential Substitution of Off-peak for Peak Electricity Usage under Time-of-Use Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
  11. Hausman, Jerry A. & Trimble, John, 1984. "Appliance purchase and usage adaptation to a permanent time-of-day electricity rate schedule," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 115-139.
  12. Train, Kenneth E & McFadden, Daniel L & Goett, Andrew A, 1987. "Consumer Attitudes and Voluntary Rate Schedules for Public Utilities," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 383-91, August.
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