Work

Do time-of-use prices deliver energy savings at the right time?

Year: 2024

Type: article

Abstract: Time-of-use (TOU) electricity prices are increasingly being adopted to reduce consumption during the higher marginal cost afternoon hours. There is ample evidence that TOU rates reduce average consumption during the peak price hours of the day, but it is unknown how these energy savings are distributed across days. Using a unique dataset from households with smart thermostats, we find that adopting TOU rates causes large decreases in peak period AC usage, resulting in energy savings that are concentrated on the hottest, highest demand days when the benefits of conservation are the greatest.

Source: Journal of Environmental Economics and Management

DOI: 10.1016/j.jeem.2024.103054

Authors: Zheng Fu, Kevin Novan, Aaron Smith

Institutions: University of California, Davis, University of California, Berkeley

Language: English

Topic: Smart Grid Energy Management

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Affordable and clean energy, Climate action

Open Access status: hybrid

Estimated APC paid: $3,510