Abstract

http://ssrn.com/abstract=738524
 
 

References (19)



 
 

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Is Real-Time Pricing Green?: The Environmental Impacts of Electricity Demand Variance


Stephen P. Holland


University of California, Berkeley - Energy Institute; University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics

Erin T. Mansur


Dartmouth College - Dartmouth Economics Department; National Bureau of Economic Research (NBER)

May 11, 2005

Yale SOM Working Paper No. ES-41
UC Energy Institute CSEM Working Paper No. 136

Abstract:     
Real-time pricing (RTP) of electricity would improve the efficiency of consumption and investment and would lessen the potential harm from market power. Conventional wisdom has claimed that RTP has an additional environmental benefit. We argue that RTP will reduce variance of electricity load and estimate the short-run impacts of a reduction in variance on emissions of SO2, NOx, and CO2. According to our estimates, a reduction in load variance, either within- or across-day, would decrease emissions in regions where peak demand is met with oil-fired capacity rather than hydroelectric capacity. These regions include the Mid-Atlantic and Illinois areas. However, reducing variance would increase emissions in regions with more hydroelectric capacity, such as the Eastern Mid-West, the Southeast, the Great Plains, and the West. The effects are relatively small.

Number of Pages in PDF File: 40

Keywords: real-time pricing, externalities, electricity markets, regulation

JEL Classification: L51, L94, Q53

working papers series


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Date posted: June 8, 2005  

Suggested Citation

Holland, Stephen P. and Mansur, Erin T., Is Real-Time Pricing Green?: The Environmental Impacts of Electricity Demand Variance (May 11, 2005). ; UC Energy Institute CSEM Working Paper No. 136. Available at SSRN: http://ssrn.com/abstract=738524

Contact Information

Stephen P. Holland (Contact Author)
University of California, Berkeley - Energy Institute ( email )
310 Barrows Hall
Berkeley, CA 94720
United States
University of North Carolina (UNC) at Greensboro - Bryan School of Business & Economics ( email )
401 Bryan Building
Greensboro, NC 27402-6179
United States
Erin T. Mansur
Dartmouth College - Dartmouth Economics Department ( email )
Hanover, NH 03755
United States
603 646 2531 (Phone)
603 646 2122 (Fax)
HOME PAGE: http://www.dartmouth.edu/~mansur/
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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