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The Response of Large Firms to Different Schemes of Time-of-Use Pricing When the Production Function is Quadratic

Asher Tishler

Year: 1989
Volume: Volume 10
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No2-6
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Abstract:
This paper constructs a model of firms' behavior before and after the introduction of time-of-use (TOU) pricing of electricity, encompassing optimal behavior under both flat-rate and time-of-use pricing. The model aims to be consistent, constraining those parameters not affected by time-of-use pricing so that they are the same under both price schemes. However, it also accounts for the new conditions (structure) under which the firm must operate once time-of-use pricing is adopted. The results show that the optimal capital under the flat rate is identical to that under revenue-neutral TOU. Almost all the firm's adjustments take place at the time that the time-of-use pricing is introduced, and only very few additional adjustments take place in the long run. These results contradict the widely-held belief that the firm cannot redistribute its electricity use over the day very quickly but can do so in the long run, once the capital input has adjusted to the new conditions.



Anticipating Air Conditioning's Impacton the World's Electricity Producers

Clinton J. Andrews

Year: 1989
Volume: Volume 10
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-7
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Abstract:
Electric power planners in developing countries have the oppor-tunity to anticipate air conditioning-induced demand peaks, rather than merely react to them, as has happened in the United States. Demand-side management activities targeting future air conditioning installations therefore may be warranted, based on economic efficiency considerations, the U.S. experience, and worldwide trends in air conditioning usage. The feasibility of such anticipatory efforts is likely to hinge on local parameters, including domestie energy supplies, foreign exchange and capital constraints, rates of load growth, evidence of impacts on load profiles, and familiarity with demand-side planning concepts.



Climate Policy and the Long-Term Evolution of the U.S. Buildings Sector

Page Kyle, Leon Clarke, Fang Rong, and Steven J. Smith

Year: 2010
Volume: Volume 31
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No2-6
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Abstract:
Buildings are the dominant driver of daily and seasonal electric load cycles, and account for 40 percent of U.S. final energy use. They account for roughly 10 percent of direct U.S. CO2 emissions and roughly 40 percent once indirect emissions from electricity generation are included. This paper explores the possible evolution of this sector over the coming century, its potential role in climate action and response to climate policies, and the potential benefits of advances in building technologies for addressing climate change. The paper presents a set of scenarios based on a detailed, service-based model of the U.S. buildings sector that is embedded within a long-term, global, integrated assessment model, MiniCAM. Eight scenarios are created in total, combining two sets of assumptions regarding U.S. building service demand growth, two sets of assumptions regarding the improvements in building energy technologies, and two assumptions regarding long-term U.S. climate action � a no-climate�action assumption and an assumption of market-based policies to reduce U.S. CO2 emissions consistent with a 450 ppmv global target. Through these eight scenarios, the paper comments on the implications of continued growth in building service demands, the ability of efficiency measures to reduce emissions, and the strong link between decarbonization of electricity generation and building sector emissions.





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