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Electricity demand response in Japan: Experimental evidence from a residential photovoltaic power-generation system

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  • Takanori Ida, Kayo Murakami, and Makoto Tanaka

Abstract

We report on a randomized controlled trial used to examine the effect of dynamic pricing when applied to households with rooftop photovoltaic (PV) power-generation systems. Using high-frequency data on household-level electricity use, PV generation, purchases, and sales, we find that critical peak pricing induced significant usage reductions of 3-4% among households with PV systems, a quarter of the effect size seen among average households without solar PV systems. In addition, we investigate the influence of the amount of PV power generated on treatment effects and the potential heterogeneity caused by participating households' attributes. This is the first large-scale field experiment evaluating the demand response of households with PV generation capabilities.

Suggested Citation

  • Takanori Ida, Kayo Murakami, and Makoto Tanaka, 2016. "Electricity demand response in Japan: Experimental evidence from a residential photovoltaic power-generation system," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    • Handle: RePEc:aen:eeepjl:eeep5-1-ida
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    Cited by:

    1. Nyberg, Roy A., 2018. "Using ‘smartness’ to reorganise sectors: Energy infrastructure and information engagement," International Journal of Information Management, Elsevier, vol. 39(C), pages 60-68.
    2. Kayo Murakami & Hideki Shimada & Yoshiaki Ushifusa & Takanori Ida, 2022. "Heterogeneous Treatment Effects Of Nudge And Rebate: Causal Machine Learning In A Field Experiment On Electricity Conservation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(4), pages 1779-1803, November.
    3. McAndrew, Ryan & Mulcahy, Rory & Gordon, Ross & Russell-Bennett, Rebekah, 2021. "Household energy efficiency interventions: A systematic literature review," Energy Policy, Elsevier, vol. 150(C).
    4. Toshi H. Arimura & Elke D. Groh & Miwa Nakai & Andreas Ziegler, 2022. "The causal effect of private and organizational climate-related identity on climate protection activities: Evidence from a framed field experiment in Japan," MAGKS Papers on Economics 202229, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Iijima, Fuyumi & Ikeda, Shintaro & Nagai, Tatsuo, 2022. "Automated computational design method for energy systems in buildings using capacity and operation optimization," Applied Energy, Elsevier, vol. 306(PA).

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