Effective and Equitable Adoption of Opt-In Residential Dynamic Electricity Pricing

Effective and Equitable Adoption of Opt-In Residential Dynamic Electricity Pricing Time-varying retail electricity pricing is very popular with economists, but has little support among regulators and consumers. I propose an opt-in time-varying residential pricing plan that would be equitable to both customers who opt in and those who don’t. Low-income households would, on average, see almost no change in their bills under time-varying pricing, while low-consumption households would see their bills decline somewhat and high-consumption households would see their bills rise. Most importantly, I show that the opt-in approach is unlikely to increase the flat rate charged to other customers by more than a few percentage points. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Effective and Equitable Adoption of Opt-In Residential Dynamic Electricity Pricing

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Publisher
Springer US
Copyright
Copyright © 2012 by Springer Science+Business Media New York
Subject
Economics / Management Science; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-012-9367-3
Publisher site
See Article on Publisher Site

Abstract

Time-varying retail electricity pricing is very popular with economists, but has little support among regulators and consumers. I propose an opt-in time-varying residential pricing plan that would be equitable to both customers who opt in and those who don’t. Low-income households would, on average, see almost no change in their bills under time-varying pricing, while low-consumption households would see their bills decline somewhat and high-consumption households would see their bills rise. Most importantly, I show that the opt-in approach is unlikely to increase the flat rate charged to other customers by more than a few percentage points.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Nov 29, 2012

References

  • Dynamic pricing? Not so fast! A residential consumer perspective
    Alexander, B. R.

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