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The Characterization of Consumption

In: Fixed and Variable Costs

Author

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  • Chris Harris

Abstract

As noted in chapter 3, figure 26, the market paradigm of electricity is changing from inelastic stochastic consumption and flexible generation, to the reverse. One way to view this is to divide consumption into planned inelastic demand plus (i) demand elasticity that can be manifest as more demand or less demand (virtual generation) in response to price change and (ii) a stochastic function.

Suggested Citation

  • Chris Harris, 2014. "The Characterization of Consumption," Palgrave Macmillan Books, in: Fixed and Variable Costs, chapter 0, pages 197-198, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37089-1_6
    DOI: 10.1057/9781137370891_6
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