Which Households Respond to Electricity Peak Pricing amid High Levels of Electrification?

Arbeitspapier

We examine heterogeneity in Norwegian households' price responses to critical peak pricing (CPP) on electricity consumption, using a large-scale randomized controlled trial (RCT), high-frequency electricity data, and default enrollment. Increasing the grid transmission charge by 4,067% (corresponding to an increase in the electricity price by 1,242%) leads to a 12.5% reduction in consumption, and virtually eliminates the consumption "peak". In contrast to prior studies from less electrified countries, the effect is broad-based, and similar across income groups. These findings provide a unique lens into the effectiveness of demand-based policies, and their impact across household groups, in a more electrified future.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15194

Classification and Topics

• Classification: Wirtschaft ; Field Experiments ; Consumer Economics: Empirical Analysis ; Electric Utilities ; Energy: Demand and Supply; Prices
• Subject: critical peak pricing ; grid transmission charge ; peak demand ; household heterogeneity ; RCT ; default enrollment ; electrification

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Garnache, Cloé ; Hernaes, Øystein ; Imenes, Anders Gravir
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/263410
• Last update: 10.03.2025, 11:43 AM CET