Consumer Response to Time Varying Prices for Electricity
Lawson, Rob; Thorsnes, Paul; Williams, John
Cite this item:
Lawson, R., Thorsnes, P., & Williams, J. (2011). Consumer Response to Time Varying Prices for Electricity (Economics Discussion Papers Series No. 1116). University of Otago. Retrieved from http://hdl.handle.net/10523/2084
Permanent link to OUR Archive version:
http://hdl.handle.net/10523/2084
Abstract:
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:
2011-11-01
Publisher:
University of Otago
Series number:
1116
ISSN:
1178-2293
Keywords:
Electricity pricing; Time of Use; Price elasticity
Research Type:
Discussion Paper
Languages:
English
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- Economics [316]
- Discussion Paper [439]