TY  - JOUR
AU  - Reiss,Peter C.
AU  - White,Matthew W.
TI  - Demand and Pricing in Electricity Markets: Evidence from San Diego During California's Energy Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9986
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9986
L1  - http://www.nber.org/papers/w9986.pdf
N1  - Author contact info:
Peter C. Reiss
Graduate School of Business
Stanford University
Stanford, CA 94305-5015
Tel: 650/725-2759
Fax: 650/725-7979
E-Mail: preiss@leland.stanford.edu

Matthew White
ISO New England
One Sullivan Drive
Holyoke, MA 01040
E-Mail: matthew.white.phd@gmail.com
AB  - We study the electricity consumption of San Diego-area households following a series of price changes and related events during California's energy crisis in 2000-01. The analysis uses a five-year panel of disaggregate billing and weather data for a random sample of 70,000 households. In contrast to prior work, these data allow us to proceed without behavioral assumptions regarding a consumer's knowledge of energy prices. We find that after a rapid price increase in summer 2000, consumption fell substantially over about 60 days, averaging 12% per household; consumption then rebounded to within 3% of pre-crisis levels after a price cap was imposed. Under the price cap public appeals for energy conservation and a remunerative voluntary conservation program had significant, but transitory, effects. Further, a large share of households reduced electricity consumption substantially (over 10%) but saved small monetary amounts ($10 or less). Overall, the results indicate consumers may be far more responsive to pecuniary and non-pecuniary incentives for altering their energy use than is commonly believed.
ER  -