Demand-side management by electric utilities in Switzerland: Analyzing its impact on residential electricity demand

Arbeitspapier

In this paper we use panel data from a survey conducted on 30 Swiss utilities to estimate the impact of demand-side management (DSM) activities on residential electricity demand using DSM spending and an energy efficiency score. Using the variation in DSM activities within utilities and across utilities over time we identify the impact of these programs and find that their presence reduce per customer residential electricity consumption by around 5%. If we consider monetary spending, the effect of a 10% increase in DSM spending causes around a 0.14% reduction in per customer residential electricity consumption. The cost of saving a kilowatt hour is around CHF 0.04 while the average cost of producing and distributing electricity in Switzerland is around CHF 0.18 per kilowatt hour. We conclude that current DSM practices in Switzerland have a statistically significant effect on reducing the demand for residential electricity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Working Paper Series ; No. 16/247

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation ; Energy: Demand and Supply; Prices ; Energy: Government Policy
• Subject: Residential electricity ; demand-side management ; energy efficiency score ; difference-in-differences ; Switzerland ; Lastmanagement ; Elektrizitätswirtschaft ; Elektrizität ; Nachfrage ; Energieeinsparung ; Energiekonsum ; Schweiz

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Boogen, Nina ; Datta, Souvik ; Filippini, Massimo
• Event: Veröffentlichung
• (who): ETH Zurich, CER-ETH - Center of Economic Research
• (where): Zurich
• (when): 2016

Further information

• DOI: doi:10.3929/ethz-a-010639983
• Handle: http://hdl.handle.net/10419/171690
• Last update: 10.03.2025, 11:43 AM CET