IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Time-of-Use Electricity Pricing and Residential Low-carbon Energy Technology Adoption

Abstract:
This paper provides the first empirical evidence on the correlation between Time-Of-Use (TOU) electricity pricing and the adoption of energy efficient appliances and solar panels. We use household-level data in Phoenix, Arizona from an appliance saturation survey of about 16,000 customers conducted by a major electric utility. Our empirical results show that TOU consumers are associated with 27% higher likelihood to install solar panels but not more likely to adopt energy-efficient air conditioning based on the propensity score matching and coarsened exact matching methods. The findings highlight that policy makers could combine TOU and solar panels when implementing educational programs or when giving out financial incentives to consumers. Our results imply that TOU is associated with a similar impact of the incentive offered by $2,070~$10,472 tax credits or rebates on solar adoption.

Download Executive Summary Purchase ( $25 )

Keywords: Time-of-use (TOU) electricity pricing, Solar panels, Energy efficiency

DOI: 10.5547/01956574.41.2.jlia

References: Reference information is available for this article. Join IAEE, log in, or purchase the article to view reference data.

Published in Volume 41, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

© 2020 International Association for Energy Economics | Privacy Policy | Return Policy