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Household Response to Incentive Payments for Load Shifting: A Japanese Time-of-Day Electricity Pricing Experiment

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  • Isamu Matsukawa
  • Hiroshi Asano
  • Hitoshi Kakimoto

Abstract

We measure the effect of incentive payments on residential time-of-day (TOD) electricity demand in summer, using data from a residential TOD electricity pricing experiment in the Kyushu region of southern Japan. During the experiment, participating households could receive incentive payments if they reduce their peak usage share. Results based on an econometric model indicate that households have shifted their electricity usage from peak to off-peak periods in response to the incentive payment, but the effect of the incentive payment on load shifting was modest.

Suggested Citation

  • Isamu Matsukawa & Hiroshi Asano & Hitoshi Kakimoto, 2000. "Household Response to Incentive Payments for Load Shifting: A Japanese Time-of-Day Electricity Pricing Experiment," The Energy Journal, , vol. 21(1), pages 73-86, January.
    • Handle: RePEc:sae:enejou:v:21:y:2000:i:1:p:73-86
    DOI: 10.5547/ISSN0195-6574-EJ-Vol21-No1-3
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    1. Douglas W. Caves & Joseph A. Herriges & Kathleen A. Kuester, 1989. "Load Shifting Under Voluntary Residential Time-of-Use Rates," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 83-99.
    2. Mountain, Dean C & Lawson, Evelyn L, 1992. "A Disaggregated Nonhomothetic Modeling of Responsiveness to Residential Time-of-Use Electricity Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 181-207, February.
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    Cited by:

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    2. Schindehutte, Minet & Morris, Michael H., 2001. "Pricing as entrepreneurial behavior," Business Horizons, Elsevier, vol. 44(4), pages 41-48.
    3. Sławomir Bielecki & Tadeusz Skoczkowski & Lidia Sobczak & Janusz Buchoski & Łukasz Maciąg & Piotr Dukat, 2021. "Impact of the Lockdown during the COVID-19 Pandemic on Electricity Use by Residential Users," Energies, MDPI, vol. 14(4), pages 1-32, February.
    4. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    5. Shiljkut, Vladimir M. & Rajakovic, Nikola Lj., 2015. "Demand response capacity estimation in various supply areas," Energy, Elsevier, vol. 92(P3), pages 476-486.
    6. Thanh Tam Ho & Sarana Shinkuma & Koji Shimada, 2018. "The Effects of Dynamic Pricing of Electric Power on Consumer Behavior: A Propensity Score Analysis for Empirical Study on Nushima Island, Japan," Energies, MDPI, vol. 11(8), pages 1-22, August.
    7. Clastres, Cédric & Khalfallah, Haikel, 2021. "Dynamic pricing efficiency with strategic retailers and consumers: An analytical analysis of short-term market interactions," Energy Economics, Elsevier, vol. 98(C).
    8. Huifang Ma & Weidong Chen & Hailin Ma & Hude Yang, 2021. "Influence of Publicity and Education and Environmental Values on the Green Consumption Behavior of Urban Residents in Tibet," IJERPH, MDPI, vol. 18(20), pages 1-14, October.
    9. Cédric Clastres & Haikel Khalfallah, 2020. "Retailers' strategies facing demand response and markets interactions," Working Papers hal-03167543, HAL.

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    More about this item

    Keywords

    Electric utilities; Load shifting; energy conservation; Time of Day (TOD) pricing; Energy use;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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