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Load management programs, cross-subsidies and transaction costs: the case of self-rationing

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  • Bernard, Jean-Thomas
  • Roland, Michel

Abstract

Load management programs are used by electric utilities to reduce the amount of reserve capacity that is required in order to meet peak consumption. Although these programs are generally offered to costumers as alternatives to regular service, economic models of their allocative efficiency have always been based on the implicit assumption that they were the only services available. This paper presents a model in which the consumer has the option to subscribe to regular service or to participate in a particular load management program, called self- rationing.
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  • Bernard, Jean-Thomas & Roland, Michel, 2000. "Load management programs, cross-subsidies and transaction costs: the case of self-rationing," Resource and Energy Economics, Elsevier, vol. 22(2), pages 161-188, May.
    • Handle: RePEc:eee:resene:v:22:y:2000:i:2:p:161-188
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    Cited by:

    1. Salies, Evens, 2013. "Real-time pricing when some consumers resist in saving electricity," Energy Policy, Elsevier, vol. 59(C), pages 843-849.
    2. repec:spo:wpecon:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
    3. Evens Salies, 2012. "Real-time pricing when consumers have saving costs," Working Papers hal-01070292, HAL.
    4. Jacopo Torriti & Philipp Grunewald, 2014. "Demand Side Response: Patterns in Europe and Future Policy Perspectives under Capacity Mechanisms," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    5. Heggie, Alastair & Eager, Dan & McKinnon, Ken & Van Der Weijde, Adriaan H., 2018. "Power rationing in a long-term power shortage," Energy Policy, Elsevier, vol. 121(C), pages 202-210.
    6. repec:hal:spmain:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
    7. Anatoly P. Dzyuba & Irina A. Solovyeva, 2020. "Demand-side management mechanisms in industry," Journal of New Economy, Ural State University of Economics, vol. 21(3), pages 175-195, October.
    8. repec:spo:wpmain:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
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    10. Hunt., Julian David & Stilpen, Daniel & de Freitas, Marcos Aurélio Vasconcelos, 2018. "A review of the causes, impacts and solutions for electricity supply crises in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 208-222.
    11. Olkkonen, Ville & Rinne, Samuli & Hast, Aira & Syri, Sanna, 2017. "Benefits of DSM measures in the future Finnish energy system," Energy, Elsevier, vol. 137(C), pages 729-738.

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    More about this item

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

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