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Electricity demand response in Japan:Experimental evidence from a residential photovoltaic generation system

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  • Takanori Ida
  • Kayo Murakami
  • Makoto Tanaka

Abstract

We report on a randomized controlled trial used to examine the effect of dynamic pricing when applied to households with rooftop photovoltaic (PV) power-generation systems. Using high-frequency data on household-level electricity use, PV generation, purchases, and sales, we find that critical peak pricing induced significant usage reductions of 3-4% among households with PV systems, a quarter of the effect size seen among average households without solar PV systems. In addition, we investigate the influence of the amount of PV power generated on treatment effects and the potential heterogeneity caused by participating households’ attributes. This is the first large-scale field experiment evaluating the demand response of households with PV generation capabilities.

Suggested Citation

  • Takanori Ida & Kayo Murakami & Makoto Tanaka, 2015. "Electricity demand response in Japan:Experimental evidence from a residential photovoltaic generation system," Discussion papers e-15-006, Graduate School of Economics Project Center, Kyoto University.
    • Handle: RePEc:kue:dpaper:e-15-006
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    References listed on IDEAS

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    Cited by:

    1. Melike E. Bildirici, 2020. "Environmental pollution, hydropower and nuclear energy generation before and after catastrophe: Bathtub‐Weibull curve and MS‐VECM methods," Natural Resources Forum, Blackwell Publishing, vol. 44(4), pages 289-310, November.
    2. Weber, Sylvain & Puddu, Stefano & Pacheco, Diana, 2017. "Move it! How an electric contest motivates households to shift their load profile," Energy Economics, Elsevier, vol. 68(C), pages 255-270.

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    More about this item

    Keywords

    randomized controlled trial; field experiment; photovoltaic generation; dynamic pricing;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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