Households' self-selection of a dynamic electricity tariff

Torgeir Ericson ()
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Torgeir Ericson: Statistics Norway, https://www.ssb.no/en/forskning/ansatte

Discussion Papers from Statistics Norway, Research Department

Abstract: Offering electricity consumers time-differentiated tariffs may increase demand responsiveness, thereby reducing peak consumption. However, one concern is that time-differentiated tariffs may also attract consumers who benefit because of their consumption pattern, even without a corresponding demand response. A discrete choice model applied to data from a residential dynamic pricing experiment indicates that higher demand flexibility increases the propensity of a household to select dynamic tariffs, while favourable consumption patterns do not influence the tariff choice. The offering of dynamic time-differentiated tariffs is then likely to increase the demand response among residential consumers.

Keywords: demand response; dynamic pricing; electricity tariff; self-selection; rate option. (search for similar items in EconPapers)
JEL-codes: D10 Q41 (search for similar items in EconPapers)
Date: 2006-02
New Economics Papers: this item is included in nep-dcm and nep-ene
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