The effects of progressive pricing on household electricity use

Hyungho Youn and Hyun Joung Jin

Journal of Policy Modeling, 2016, vol. 38, issue 6, 1078-1088

Abstract: This paper proposes a model to calculate the magnitude of the reduction in household electricity use that results from a progressive pricing policy, relative to the case where uniform pricing is implemented. To quantify such an effect, a theoretical model is developed for household electricity use, and then it is applied to the progressive pricing policy for electricity in Seoul, South Korea, to empirically derive the magnitude of the reduction in household electricity use. The results suggest that progressive pricing reduces the elasticity in demand for household electricity in the summer. That is, the progressive pricing policy has a curbing effect. Therefore, households would consume a higher amount of electricity in the summer without progressive pricing.

Keywords: Electricity consumption; Household electricity demand; Progressive pricing; Curbing effect (search for similar items in EconPapers)
JEL-codes: D04 D12 L94 Q41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893816300527
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:jpolmo:v:38:y:2016:i:6:p:1078-1088

DOI: 10.1016/j.jpolmod.2016.06.001

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().