Experimental Evidence on the Effect of Information and Pricing on Residential Electricity Consumption

70 Pages Posted: 19 Feb 2019

See all articles by Jesse Burkhardt

Jesse Burkhardt

Colorado State University, Fort Collins - Colorado State University

Kenneth Gillingham

Yale University

Praveen K. Kopalle

Dartmouth College - Tuck School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: February 9, 2019

Abstract

This study examines a field experiment in Texas that includes pricing and informational interventions to encourage energy conservation during summer peak load days when the social cost of generation is the highest. We estimate that our critical peak pricing intervention reduces electricity consumption by 14%. Using unique high frequency appliance-level data, we can attribute 74% of this response to air conditioning. In contrast, we find minimal response to active information provision and conservation appeals. A complementary experimental program also lowers nighttime prices during the off-peak season, providing the first evidence of electric vehicle loadshifting in response to price.

Keywords: critical peak pricing, informational interventions, electric vehicles, loadshifting, habituation, spillovers

JEL Classification: L94, D83, L98, Q41, Q48, C93

Suggested Citation

Burkhardt, Jesse and Gillingham, Kenneth and Kopalle, Praveen K., Experimental Evidence on the Effect of Information and Pricing on Residential Electricity Consumption (February 9, 2019). USAEE Working Paper No. 19-389; Tuck School of Business Working Paper No. 3336385. Available at SSRN: https://ssrn.com/abstract=3336385 or http://dx.doi.org/10.2139/ssrn.3336385

Jesse Burkhardt

Colorado State University, Fort Collins - Colorado State University ( email )

Department of Economics
Fort Collins, CO 80253-1771
United States

Kenneth Gillingham (Contact Author)

Yale University ( email )

New Haven, CT 06511
United States
203-436-5465 (Phone)

HOME PAGE: http://www.yale.edu/gillingham

Praveen K. Kopalle

Dartmouth College - Tuck School of Business ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-3612 (Phone)
603-646-1308 (Fax)

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