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

Jesse Burkhardt, Kenneth Gillingham, Praveen K. Kopalle

NBER Working Paper No. 25576
Issued in February 2019
NBER Program(s):Environment and Energy Economics

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.

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Document Object Identifier (DOI): 10.3386/w25576

 
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