Optional Time-of-Use Prices for Electricity: Econometric Analysis of Surplus and Pareto Impacts

Kenneth Train () and Gil Mehrez

RAND Journal of Economics, 1994, vol. 25, issue 2, 263-283

Abstract: We estimate a model of time-of-use (TOU) consumption and choice among optional TOU tariffs in which the customer's choice among tariffs is based on its demand parameters, which vary in the population. We simulate the impact on consumption, consumer surplus, and profit of several optional TOU rates that were offered experimentally in northern California. The analysis suggests that, with one possible exception, the offering of these optional rates did not constitute a Pareto improvement. However, total surplus, excluding measurement costs, is estimated to have risen by $1.41 to $2.55 per month per customer who chose the TOU rates.

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819942 ... O%3B2-2&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:rje:randje:v:25:y:1994:i:summer:p:263-283

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().