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The Conservation and Welfare Effects of Information in a Time-of-Day Pricing Experiment

Author

Listed:
  • Richard J. Sexton
  • Terri A. Sexton
  • Joyce Jong-Wen Wann
  • Catherine L. Kling

Abstract

A recurring concern in TOD pricing studies has been that short term experimental TOD rates may not stimulate as much conservation as would occur if TOD rates were implemented on a permanent basis. That is, how accurately do experimental TOD pricing results extend to nonexperimental settings? The present paper provides information relevant to this adjustment question. We examine a little analyzed component of the TOD pricing experiment conducted by the Southern California Edison (SCE) Company, wherein a subset of the TOD treatment households had a continuous-display, electricity use monitoring device installed mid- way through the experiment. The SCE experiment was one of 14 TOD pricing studies initiated by the U.S. Department of Energy (DOE). Most analyses of TOD pricing have been based on DOE-initiated studies, but this experiment was the only such study to include the monitoring component.
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Suggested Citation

  • Richard J. Sexton & Terri A. Sexton & Joyce Jong-Wen Wann & Catherine L. Kling, 1989. "The Conservation and Welfare Effects of Information in a Time-of-Day Pricing Experiment," Land Economics, University of Wisconsin Press, vol. 65(3), pages 272-279.
    • Handle: RePEc:uwp:landec:v:65:y:1989:i:3:p:272-279
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    Cited by:

    1. Lynham, John & Nitta, Kohei & Saijo, Tatsuyoshi & Tarui, Nori, 2016. "Why does real-time information reduce energy consumption?," Energy Economics, Elsevier, vol. 54(C), pages 173-181.
    2. Isamu Matsukawa, 2004. "The Effects of Information on Residential Demand for Electricity," The Energy Journal, , vol. 25(1), pages 1-17, January.
    3. Carsten Lynge Jensen & Lars Gårn Hansen & Troels Fjordbak & Erik Gudbjerg, 2011. "The effect of providing free autopoweroff plugs to households on electricity consumption - A field experiment," IFRO Working Paper 2011/10, University of Copenhagen, Department of Food and Resource Economics.
    4. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    5. Carsten Lynge Jensen, Lars Garn Hansen, Troels Fjordbak, and Erik Gudbjerg, 2012. "Providing Free Autopoweroff Plugs: Measuring the Effect on Households' Electricity Consumption through a Field Experiment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    6. Matsukawa, Isamu, 2018. "Information acquisition and residential electricity consumption: Evidence from a field experiment," Resource and Energy Economics, Elsevier, vol. 53(C), pages 1-19.
    7. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Working Papers 2018.07, FAERE - French Association of Environmental and Resource Economists.
    8. Du, Limin & Guo, Jin & Wei, Chu, 2017. "Impact of information feedback on residential electricity demand in China," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 324-334.
    9. Isamu Matsukawa, 2005. "The Benefits of Information on the Efficient Usage of Consumer Durables," Others 0501005, University Library of Munich, Germany.
    10. Andersen, Frits Møller & Baldini, Mattia & Hansen, Lars Gårn & Jensen, Carsten Lynge, 2017. "Households’ hourly electricity consumption and peak demand in Denmark," Applied Energy, Elsevier, vol. 208(C), pages 607-619.

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