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The price elasticity of electricity demand when marginal incentives are very large
Energy Economics ( IF 13.6 ) Pub Date : 2021-10-13 , DOI: 10.1016/j.eneco.2021.105604
Gauthier Lanot 1 , Mattias Vesterberg 1, 2
Affiliation  

Using unique data on Swedish households, we measure the price elasticity of electricity demand for households facing a mandatory non-linear distribution tariff, where households are charged based on their maximum consumption during a month, and where the marginal incentives are very large. We estimate the price elasticity using both 2SLS and bunching estimators, and we find that the price elasticity is smaller than what many previous studies on electricity demand have found.

We show that the 2SLS estimates are not robust to changes to the set of controls or to the sample definition, while the bunching estimates suggest that the price elasticity of electricity demand is small in response to the large marginal incentives.

Furthermore, we illustrate why charging households based on maximum consumption during a month leads to weak incentives in the end of the month, and discuss alternative tariff designs.



中文翻译:

边际激励很大时电力需求的价格弹性

使用瑞典家庭的独特数据,我们衡量了面临强制性非线性分配电价的家庭的电力需求价格弹性,这些家庭根据一个月内的最大消费量收费,并且边际激励非常大。我们同时使用 2SLS 和聚集估计器来估计价格弹性,我们发现价格弹性比之前许多电力需求研究发现的要小。

我们表明,2SLS 估计对于控制集或样本定义的变化并不稳健,而聚集估计表明电力需求的价格弹性很小,以响应大的边际激励。

此外,我们说明了为什么基于一个月内的最大消费向家庭收费会导致月末激励较弱,并讨论替代的电价设计。

更新日期:2021-10-20
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