Experimental Evidence on the Effect of Information and Pricing on Residential Electricity Consumption
Kenneth Gillingham () and
Praveen K. Kopalle
No 25576, NBER Working Papers from National Bureau of Economic Research, Inc
This study examines a field experiment in Texas that includes pricing and informational interventions to encourage energy conservation during summer peak load days when the social cost of generation is the highest. We estimate that our critical peak pricing intervention reduces electricity consumption by 14%. Using unique high frequency appliance-level data, we can attribute 74% of this response to air conditioning. In contrast, we find minimal response to active information provision and conservation appeals. A complementary experimental program also lowers nighttime prices during the off-peak season, providing the first evidence of electric vehicle loadshifting in response to price.
JEL-codes: D83 L94 L98 Q41 Q48 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-exp and nep-reg
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