The Alchemy of Demand Response: Turning Demand into Supply

Cliff Rochlin

The Electricity Journal, 2009, vol. 22, issue 9, 10-25

Abstract: Paying customers to refrain from purchasing products they want seems to run counter to the normal operation of markets. Demand response should be interpreted not as a supply-side resource but as a secondary market that attempts to correct the misallocation of electricity among electric users caused by regulated average rate tariffs. In a world with costless metering, the DR solution results in inefficiency as measured by deadweight losses.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1040-6190(09)00250-4
Full text for ScienceDirect subscribers only

Related works:
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:eee:jelect:v:22:y:2009:i:9:p:10-25

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

The Electricity Journal is currently edited by R. Cohen

More articles in The Electricity Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().