Consumer Response to Time Varying Prices for Electricity
We report new experimental evidence of the household response to weekday differentials in peak and off-peak electricity prices. The data come from Auckland, New Zealand, where peak residential electricity consumption occurs in winter for heating. Peak/off-peak price differentials ranged over four randomly-selected groups from 1.0 to 3.5. On average, there was no response except in winter. In winter, participant households reduced electricity consumption by at least 10%, took advantage of lower off-peak prices but did not respond to the peak price differentials. Response varied with house and household size, time spent away from home, and whether water was heated with electricity.
|Date of creation:||Dec 2011|
|Date of revision:||Dec 2011|
|Contact details of provider:|| Postal: P.O. Box 56, Dunedin|
Phone: +64 3 479 8725
Fax: 64 3 479 8171
Web page: http://www.business.otago.ac.nz/econ
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Faruqui, Ahmad & Hledik, Ryan & Tsoukalis, John, 2009. "The Power of Dynamic Pricing," The Electricity Journal, Elsevier, vol. 22(3), pages 42-56, April.
- Herriges, Joseph A. & Baladi, S. & Sweeney, T., 1998.
"Residential Response to Voluntary Time-Of-Use Electricity Rates,"
Staff General Research Papers
1233, Iowa State University, Department of Economics.
- Mostafa Baladi, S. & Herriges, Joseph A. & Sweeney, Thomas J., 1998. "Residential response to voluntary time-of-use electricity rates," Resource and Energy Economics, Elsevier, vol. 20(3), pages 225-244, September.
- 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.
- Douglas W. Caves & Joseph A. Herriges & Kathleen A. Kuester, 1989. "Load Shifting Under Voluntary Residential Time-of-Use Rates," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 83-99.
- Chi-Keung Woo, 1985. "Demand for Electricity of Small Nonresidential Customers under Time-Of-Use (TOU) Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 115-127.
- Matsukawa, Isamu, 2001. "Household Response to Optional Peak-Load Pricing of Electricity," Journal of Regulatory Economics, Springer, vol. 20(3), pages 249-67, November.
- Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
When requesting a correction, please mention this item's handle: RePEc:otg:wpaper:1116. 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: (Janet Bryant)
If references are entirely missing, you can add them using this form.