Which Households Respond to Electricity Peak Pricing amid High Levels of Electrification?

Cloé Garnache, Øystein Hernæs and Anders Gravir Imenes ()
Additional contact information
Anders Gravir Imenes: University of Oslo

No 15194, IZA Discussion Papers from IZA Network @ LISER

Abstract: We examine heterogeneity in Norwegian households' price responses to critical peak pricing (CPP) on electricity consumption, using a large-scale randomized controlled trial (RCT), high-frequency electricity data, and default enrollment. Increasing the grid transmission charge by 4,067% (corresponding to an increase in the electricity price by 1,242%) leads to a 12.5% reduction in consumption, and virtually eliminates the consumption "peak". In contrast to prior studies from less electrified countries, the effect is broad-based, and similar across income groups. These findings provide a unique lens into the effectiveness of demand-based policies, and their impact across household groups, in a more electrified future.

Keywords: RCT; household heterogeneity; peak demand; grid transmission charge; critical peak pricing; default enrollment; electrification (search for similar items in EconPapers)
JEL-codes: C93 D12 L94 Q41 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2022-03
New Economics Papers: this item is included in nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published as 'Demand-Side Management in Fully Electrified Homes' in: Journal of the Association of Environmental and Resource Economists, 2025, 12 (2), 257–283

Downloads: (external link)
https://docs.iza.org/dp15194.pdf (application/pdf)

Related works:
Working Paper: Which Households Respond to Electricity Peak Pricing Amid High Levels of Electrification? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp15194

Access Statistics for this paper

More papers in IZA Discussion Papers from IZA Network @ LISER Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().