Optional Time-of-Use Prices for Electricity: Econometric Analysis of Surplus and Pareto Impacts

Train, Kenneth; Mehrez, Gil

doi:10.2307/2555830

Cited by 52 publications

(20 citation statements)

References 13 publications

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“…These adverse selection issues have been examined in a number of studies. See Ham, Mountain, and Chan [1987], Caves, Herriges, and Kuester [1989] and Train and Mehrez [1994]. Another tariff structure, real-time pricing, requires consumers to pay the actual wholesale price of electricity, varying by hour and day, in addition to transmission and distribution charges.…”

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confidence: 99%

Consumption Under Noisy Price Signals: A Study of Electricity Retail Rate Deregulation in San Diego*

Bushnell

Mansur

2005

J Industrial Economics

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Utility services employ nonlinear tariffs that attempt to convey information on cost convexities. This paper examines how customers respond to noisy and volatile tariffs by measuring deregulated retail rates' impact on electricity consumption in San Diego. When rates doubled in 2000, consumers appear to have reacted more to recent past bills than to current price information. By summer's end, we find consumption fell 6% while lagging price increases. Even months after the utility restored low historic rates customers continued curtailing demand. We conclude that rate structures relying upon lagged wholesale price averages produce delayed responses to scarcities or high costs.

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confidence: 99%

Consumption Under Noisy Price Signals: A Study of Electricity Retail Rate Deregulation in San Diego*

Bushnell

Mansur

2005

J Industrial Economics

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“…These statistically insignificant and small estimates of income effects on fuel demand indicate the validity of the fuel demand function that does not explicitly take account of any income effect. In fact, Train and Mehrez (1994) assume a linear demand function without any income effect in their analysis of a discrete-continuous model of residential electricity demand.…”

Section: A Discrete-continuous Model Of An Environmentally Differentimentioning

confidence: 99%

The Welfare Effects of Environmental Taxation on a Green Market Where Consumers Emit a Pollutant

Matsukawa

2011

Environ Resource Econ

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This paper examines the welfare impact of emission taxes and subsidies in a green market where consumers emit a pollutant through their usage of products produced by duopolists. For this purpose, we employ a discrete-continuous model including both consumer choice and usage of an environmentally differentiated product in a utility-consistent framework. The findings indicate that an emission tax is always welfare dominant over a subsidy on consumer purchases of the clean product because of its contribution to a reduction in environmental damage. It does this by both inducing firms to improve the environmental qualities of their products and by constraining consumer usage of these products.

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“…The author also notes that many of the experiments performed with TOU rates could be questionable given that there is an incentive to participate in the experiment, which varies according to consumption level, and thus introduces bias into the sample. The selection bias could also be a consequence of the fact reported by Train and Mehrez (1994) that the consumption level is deeply affected by the consumer price response of participants in the experiment. Since the participants are aware that they are part of an experiment, this may influence their own consumption, as stated by Herter et al (2007).…”

Section: Introductionmentioning

confidence: 99%

Household Preferences for Time-of-Use Rates in the Portuguese Electricity Market

Marques

Fontes

Fuinhas

2012

Energy Studies Review

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This paper contributes to the debate about peak-load pricing by making an analysis of the residential electricity market in Portugal. The results were built on techniques of logit regression complemented by quantile regression. We estimate the probability of choosing the Time-Of-Use electricity rate and the probability of reducing the Monthly Costs of Electricity by switching the rate for different consumer profiles. Factors such as consumer behaviour and knowledge are determinant when it comes to choosing differentiated rates. Our results suggest guidelines for defining policy measures that will promote an effective change in consumption periods and rate choices.

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Optional Time-of-Use Prices for Electricity: Econometric Analysis of Surplus and Pareto Impacts

Cited by 52 publications

References 13 publications

Consumption Under Noisy Price Signals: A Study of Electricity Retail Rate Deregulation in San Diego*

Consumption Under Noisy Price Signals: A Study of Electricity Retail Rate Deregulation in San Diego*

The Welfare Effects of Environmental Taxation on a Green Market Where Consumers Emit a Pollutant

Household Preferences for Time-of-Use Rates in the Portuguese Electricity Market

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