Demand-Side Management in Fully Electrified Homes

Cloé Garnache, Øystein Hernæs and Anders Gravir Imenes

Journal of the Association of Environmental and Resource Economists, 2025, vol. 12, issue 2, 257 - 283

Abstract: We report the results of a critical peak pricing (CPP) experiment conducted in an environment where homes are fully electrified, including both room and water heating. When a CPP with day-ahead SMS announcements is applied to the afternoon peak, creating a 10-fold increase in the electricity price, electricity consumption decreases by 15.3%, virtually eliminating that peak. The largest responses come from electric vehicle (EV) households. Also, unlike households without EVs who make reductions without compensating later, EV households respond to the CPP by shifting load to off-peak and next-day use. In our experiment, where higher-income households are disproportionately likely to own EVs, we find that demand reductions induced by the CPP are similar across income groups. Our results support the view that increased electrification may not only lead to a greater need for demand-side management but also enhance the flexibility in how households can and are willing to respond.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/731607 (application/pdf)
http://dx.doi.org/10.1086/731607 (text/html)
Access to the online full text or PDF requires a subscription.

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:ucp:jaerec:doi:10.1086/731607

Access Statistics for this article

More articles in Journal of the Association of Environmental and Resource Economists from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().