The mitigating effect of strategic behavior on the net benefits of a direct load control program

Corey Lang and Edson Okwelum

Energy Economics, 2015, vol. 49, issue C, 141-148

Abstract: Demand response is an important tool for utilities to manage load during peak periods. While the effects of demand response programs on peak load reductions are well studied and intuitive, assessments typically fail to recognize the potential for off-peak behavioral responses that may mitigate the total benefits of the program. Using smart meter consumption data on residential air conditioning units enrolled in a direct load control program, this paper examines the changes in consumption prior to and after curtailment events. The results suggest substantial increases in off-peak consumption, which reduce energy, monetary, and environmental benefits of the program by over 40%.

Keywords: Demand response; Pre-cooling; Snapback; Strategic behavior; Breakpoints (search for similar items in EconPapers)
JEL-codes: L94 Q41 Q5 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:49:y:2015:i:c:p:141-148

DOI: 10.1016/j.eneco.2015.01.025

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