Residential energy demand and the interaction of price and temperature: British experimental evidence

Andrew Henley; John Peirson

doi:10.1016/S0140-9883(97)00025-X

Residential energy demand and the interaction of price and temperature: British experimental evidence

Andrew Henley
, John Peirson

Business School

University of Kent

Research output: Contribution to journal › Article › peer-review

50 Citations (Scopus)

Abstract

The responsiveness of heating energy demand to pricing is shown to be dependent on temperature and vice versa. This is investigated empirically using residential electricity demand data obtained under conditions of price variation from a British time-of-use pricing experiment. Results confirm that consumer responses to higher electricity prices are conditional on temperature levels, particularly during the daytime and for households with high overall levels of electricity consumption and previous experience of time-of-use tariffs.

Original language	English
Pages (from-to)	157-171
Number of pages	15
Journal	Energy Economics
Volume	20
Issue number	2
DOIs	https://doi.org/10.1016/S0140-9883(97)00025-X
Publication status	Published - 01 Apr 1998

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

electricity demand
time-of-use pricing
temperature
Temperature
Electricity demand
Time-of-use pricing

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10.1016/S0140-9883(97)00025-X

https://www.scopus.com/inward/record.uri?eid=2-s2.0-0345769892&partnerID=40&md5=157a2ad7ea3f9a5b4cfb7fa0498f322f

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title = "Residential energy demand and the interaction of price and temperature: British experimental evidence",

abstract = "The responsiveness of heating energy demand to pricing is shown to be dependent on temperature and vice versa. This is investigated empirically using residential electricity demand data obtained under conditions of price variation from a British time-of-use pricing experiment. Results confirm that consumer responses to higher electricity prices are conditional on temperature levels, particularly during the daytime and for households with high overall levels of electricity consumption and previous experience of time-of-use tariffs. ",

keywords = "electricity demand, time-of-use pricing, temperature, Temperature, Electricity demand, Time-of-use pricing",

author = "Andrew Henley and John Peirson",

note = "Funding Information: The article uses data collected from the Electricity Management Unit Demonstration Project (EMUDP), only the second British TOU pricing experiment. The EMUDP was conducted by the Electricity Association of Great Britain and part funded by the European Union over the period April 1989–March 1990 [see Peirson et al. (1991) for details]. Earlier work by the present authors using the EMUDP experiment data ( Henley and Peirson, 1994 ) investigated electricity consumption differences between households who volunteered for the experimental tariffs and a control sample and found significant evidence of electricity load-shifting by experiment households away from times of the day with a high price electricity. This was particularly so for households in higher consumption strata where the income effects of higher tariffs were proportionately larger. This earlier work did not attempt to estimate directly consumer responsiveness to TOU price changes and the present article rectifies this.",

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doi = "10.1016/S0140-9883(97)00025-X",

language = "English",

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T2 - British experimental evidence

AU - Henley, Andrew

AU - Peirson, John

N1 - Funding Information: The article uses data collected from the Electricity Management Unit Demonstration Project (EMUDP), only the second British TOU pricing experiment. The EMUDP was conducted by the Electricity Association of Great Britain and part funded by the European Union over the period April 1989–March 1990 [see Peirson et al. (1991) for details]. Earlier work by the present authors using the EMUDP experiment data ( Henley and Peirson, 1994 ) investigated electricity consumption differences between households who volunteered for the experimental tariffs and a control sample and found significant evidence of electricity load-shifting by experiment households away from times of the day with a high price electricity. This was particularly so for households in higher consumption strata where the income effects of higher tariffs were proportionately larger. This earlier work did not attempt to estimate directly consumer responsiveness to TOU price changes and the present article rectifies this.

PY - 1998/4/1

Y1 - 1998/4/1

N2 - The responsiveness of heating energy demand to pricing is shown to be dependent on temperature and vice versa. This is investigated empirically using residential electricity demand data obtained under conditions of price variation from a British time-of-use pricing experiment. Results confirm that consumer responses to higher electricity prices are conditional on temperature levels, particularly during the daytime and for households with high overall levels of electricity consumption and previous experience of time-of-use tariffs.

AB - The responsiveness of heating energy demand to pricing is shown to be dependent on temperature and vice versa. This is investigated empirically using residential electricity demand data obtained under conditions of price variation from a British time-of-use pricing experiment. Results confirm that consumer responses to higher electricity prices are conditional on temperature levels, particularly during the daytime and for households with high overall levels of electricity consumption and previous experience of time-of-use tariffs.

KW - electricity demand

KW - time-of-use pricing

KW - temperature

KW - Temperature

KW - Electricity demand

KW - Time-of-use pricing

UR - https://www.scopus.com/pages/publications/0345769892

U2 - 10.1016/S0140-9883(97)00025-X

DO - 10.1016/S0140-9883(97)00025-X

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SN - 0140-9883

VL - 20

SP - 157

EP - 171

JO - Energy Economics

JF - Energy Economics

IS - 2

ER -

Residential energy demand and the interaction of price and temperature: British experimental evidence

Abstract

UN SDGs

Keywords

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