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Asymmetry in the Residential Demand for Electricity

Trevor Young, Thomas H. Stevens, and Cleve Willis

Year: 1983
Volume: Volume 4
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-NoSI-10
No Abstract



Residential Electricity Demand Modeling in the Australian Capital Territory: Preliminary Results

W. A. Donnelly

Year: 1984
Volume: Volume 5
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No2-8
View Abstract

Abstract:
The demand for electricity has recently become a topic of major interest in Australia, where very little empirical analysis has been done (see Hawkins, 1975; Saddler et al., 1980; Department of National Development and Energy, 1981; Brian and Schuyers, 1981; and Donnelly and Saddler, 1982). Two of the policy issues being raised concern the appropriate pricing strategies that should be adopted by supplying authorities and the need for additional generating capacity. An understanding of the relative importance of the factors influencing electricity demand is required to aid public policy making, particularly since substantial investment is now being considered.



Residential Electricity Demand: A Suggested Appliance Stock Equation

Christopher Garbacz

Year: 1984
Volume: Volume 5
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No2-11
View Abstract

Abstract:
A large amount of work in residential electricity demand has relied on logit estimation of a disaggregated appliance stock. (See the seminal work by McFadden et al., 1977.) While this approach may be suitable for certain types of models with certain goals in mind, a simple formulation of an appliance stock equation may sometimes be appropriate. For example, if the goal is to estimate seasonal patterns in elasticities employing a national micro-data set (as in the National Interim Energy Consumption Survey 1978-1979; see U.S. Department of Energy, 1980), then it may be appropriate to develop an appliance stock equation to predict the size of an appliance stock index (approximating a continuous variable). The present appliance stock equation is part of a three-equation model that is estimated in log-linear form via 2SLS.



An Application of the Expenditure Function in Electricity Pricing: Optimal Residential Time-of-Use Rate Option

Chi-Keung Woo

Year: 1985
Volume: Volume 6
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol6-No2-7
View Abstract

Abstract:
Caves et al. (1983) recently reported that mandatory time-of-use (TOU) pricing for residential customers served by four Illinois electric utilities fails to pass the cost-benefit test. Gains in economic efficiency are outweighed by the relatively high TOU meter costs. An obvious alternative is to offer a TOU rate option for which customer participation is voluntary (see, for example, Woo et al. [1983, Section D] and Malko and Faruqui [1980, pp. 161-62]). The problem of optimal pricing under self-selection has been analyzed by Faulhaber and Panzar (1977), Panzar and Sibley (1978), and Mirman and Sibley (1980). Following these studies, this paper derives the optimal electricity prices when a customer can choose between paying the TOU rates and the full incremental costs of a TOU meter and remaining on a flat rate schedule. My approach departs from the earlier studies in using the expenditure function to characterize the optimization problem as described by Diamond and McFadden (1974).



Seasonal and Regional Residential Electricity Demand

Christopher Garbacz

Year: 1986
Volume: Volume 7
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No2-9
View Abstract

Abstract:
Following the seminal work of McFadden. Puig, and Kirschner (1977) and the general availability of national microdata sets, residential energy demand studies have been conducted for electricity, natural gas, fuel oil. LP gas, and wood (see Garbacz, 1984, 1985). Using the National Interim Energy Consumption Survey (NIECS) data, Garbacz (1984) developed a three-equation model (demand, price, and appliance stock) to estimate national electricity demand using two-stage least squares (2SLS) for house-holds by month. This study builds on the previous work to estimate elasticities by month and by region. It is hypothesized that elasticities vary substantially between the heating and cooling seasons. Previous work by Acton, Mitchell, and Sohiberg (1980); Parti and Parti (1980); Archibald, Finifter, and Moody (1982); Murray et al. (1978); and Garbacz (1984) supports this. Houthakker (1980), Halvorsen (1978), and Murray et al. (1978) also have found differences in elasticities by region.



A Residential Demand Charge: Evidence from the Duke Power Time-of-Day Pricing Experiment

Thomas N. Taylor and Peter M. Schwarz

Year: 1986
Volume: Volume 7
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No2-10
View Abstract

Abstract:
Demand charges account for one-third to one-half of industrial and commercial electricity bills, and yet they have been virtually ignored, both theoretically and practically, as a component of residential tariffs. Our objective here is twofold: (1) to model and test the effects of a time-of-use demand charge on residential consumer behavior and (2) to evaluate, theoretically and empirically, its influence on utility system peak. Among the pragmatic issues are the effects of sustained hot weather on household response and the effects of the charge on demand at time of system peak compared to billing demand.



Energy Saving Resulting from the Adoption of More Efficient Appliances

J. Daniel Khazzoom

Year: 1987
Volume: Volume 8
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No4-8
View Abstract

Abstract:
In last November's IAEE meetings, Amory Lovins reported estimatesof energy saving that will result from the adoption of more efficient appliances. This note addresses three questions related to the subject.1. The realism of Lovins' estimate of energy saving.2. The way these estimates fare when juxtaposed against the price elasticity of demand used by Lovins.3. The light my recent empirical results shed on the magnitude of energy saving we can realistically expect.In the process, the note touches on the polar opposite policies that Lovins has been advocating.



Household Preference for Interruptible Rate Options and the Revealed Value of Service Reliability

Michael J. Doane, Raymand S. Hartman and Chi-Keung Woo

Year: 1988
Volume: Volume 9
Number: Special Issue 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-NoSI2-8
No Abstract



The Residential Demand for Electricity in the TVA Power Service Area: Appliance Consumption from 1979 to 1986

Gary L. Jackson

Year: 1988
Volume: Volume 9
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No1-7
View Abstract

Abstract:
This paper compares appliance-specific electricity consumption at five points in time from 1979 to 1986. One of the major findings is that residential customers have reduced space heating electricity consumption substantially while space cooling consumption has remained relatively stable. Appliance-specific estimates of electricity consumption for seven other appliances are also provided. Impacts of six major factors affecting appliance electricity consumption (price, income, age, weather, living quarters' size, and the number of people) are estimated.



The Effects of Information on Residential Demand for Electricity

Isamu Matsukawa

Year: 2004
Volume: Volume 25
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol25-No1-1
View Abstract

Abstract:
This paper measures the effects of information on residential demand for electricity, using data from a Japanese experiment. In the experiment, households had a continuous-display, electricity use monitoring device installed at their residence. The monitor was designed so that each consumer could easily look at graphs and tables associated with the consumer s own usage of electricity at any time during the experiment. The panel data were used to estimate a random effects model of electricity and count data models of monitor usage. The results indicate that monitor usage contributed to energy conservation.




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