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

Peak Load Habits for Sale? Soft Load Control and Consumer Preferences on the Electricity Market

The main purpose of this paper is to estimate lost consumer values due to various restrictions on household electricity use involving behavior adaptation. To do this, we conduct a choice experiment where households choose between hypothetical electricity contracts including various restrictions on the use of high-power household appliances. In addition, we use a contingent valuation question related to complete blackouts to study a restriction on other types of electricity usage (heating, lighting, TV, etc.). The results indicate a significant difference between the value lost due to the soft control, and the blackouts. Furthermore, policies aiming at stimulating behavioral changes are costly and it is far from obvious that demand response requiring behavioral adaptation is more cost effective than supply response (i.e., increased production of electricity).

Download Executive Summary Purchase ( $25 )

Keywords: Value of lost load, Choice experiment, Electricity contracts, Demand response

DOI: 10.5547/01956574.42.1.tbro

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

Published in Volume 42, Number 1 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy