Experiments in seasonal-time-of-day pricing of electricity to residential users
- Resource Type
- Journal Article
- Authors
- Source
- Bell J. Econ. Manage. Sci.; (United States); 7:2
- Subject
- 29 ENERGY PLANNING, POLICY AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION ELECTRIC POWER
ECONOMIC ELASTICITY
PEAK-LOAD PRICING
COST BENEFIT ANALYSIS
RESIDENTIAL SECTOR
CONSUMPTION RATES
DECISION MAKING
DEMAND FACTORS
DESIGN
ENERGY CONSUMPTION
MATHEMATICAL MODELS
PUBLIC RELATIONS
SEASONAL VARIATIONS
SOCIAL IMPACT
USA
CHARGES
NORTH AMERICA
POWER
VARIATIONS 296000* -- Energy Planning & Policy-- Electric Power
290200 -- Energy Planning & Policy-- Economics & Sociology
320101 -- Energy Conservation, Consumption, & Utilization-- Residential Buildings-- (-1987)
- Language
- English
A number of experiments designed to test the feasibility of seasonal-time-of-day pricing are currently under way in the United States. This paper addresses some of the problems that these experiments are likely to encounter, and describes a methodology for measuring the welfare benefits and costs from STD pricing. The importance of a well-articulated model of consumer demand as part of the design of an experiment is stressed. It is suggested that, in the southern and southwestern parts of the country, realistic seasonal differentials may exhaust most of the welfare benefits of moving to marginal-cost pricing.