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Household Electricity Demand, Revisited

Author

Listed:
  • White, Matthew W.

    (Stanford U)

  • Reiss, Peter C.
Abstract
Recent efforts to restructure and partially deregulate electricity markets have renewed interest in understanding how consumers respond to price changes. Several interrelated problems complicate demand analyses of these markets, including nonlinear pricing, heterogeneity in households' price sensitivities, and data aggregation. This paper formulates a model of household electricity demand that addresses these difficulties. We estimate the mode using data for a representative sample of California households, and summarize how electricity demand elasticities vary in that state. We then use the model to analyze the electricity consumption and expenditure effects of recent tariff structure changes in California.

Suggested Citation

  • White, Matthew W. & Reiss, Peter C., 2001. "Household Electricity Demand, Revisited," Research Papers 1715, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:1715
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    File URL: http://gsbapps.stanford.edu/researchpapers/library/RP1715.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Maria Chiara D'errico, 2020. "Demand Elasticity in the Italian Power Market: a Bayesian Experiment under dual pricing scheme," Review of Economics and Institutions, Università di Perugia, vol. 11(1-2).
    2. Stavins, Robert & Hanemann, W. Michael & Olmstead, Sheila, 2005. "Do Consumers React to the Shape of Supply? Water Demand under Heterogeneous Price Structures," RFF Working Paper Series dp-05-29, Resources for the Future.
    3. Jean-Pierre H. Dubé, 2018. "Microeconometric Models of Consumer Demand," NBER Working Papers 25215, National Bureau of Economic Research, Inc.
    4. Tongam Sihol Nababan, 2015. "Analysis of Household Characteristics Affecting the Demand of PLN’s Electricity. An Observation on Small Households in City of Medan, Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 79-92, June.
    5. Peter C. Reiss & Matthew W. White, 2003. "Demand and Pricing in Electricity Markets: Evidence from San Diego During California's Energy Crisis," NBER Working Papers 9986, National Bureau of Economic Research, Inc.
    6. Wasantha Athukorala & Clevo Wilson, 2010. "Demand for electricity: evidence of cointegration and causality from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 258, School of Economics and Finance, Queensland University of Technology.
    7. Katja Seim & V. Brian Viard, 2003. "The Effect Of Entry And Market Structure On Cellular Pricing Tactics," Working Papers 03-13, NET Institute, revised Nov 2003.

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