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How much shift in demand? Findings from a field experiment in Germany
Panel: 7. Monitoring and evaluation
This is a peer-reviewed paper.
Authors:
Joachim Schleich
, Grenoble Ecole de Management, France
Marian Klobasa, Fraunhofer Institute Systems and Innovation Research, Germany
Abstract
In this paper we evaluate the effects of time of use (TOU) pricing in a field experiment in Germany on residential peak and off-peak demand, which involves more than 1500 households in the TOU treatment and the control group. The TOU experiment lasted for six months and the ratio of peak-to off peak prices was 177%. Results from econometric difference-in-difference analyses suggest that TOU pricing corresponds to average percentage reductions in peak-demand of 6% to 7%, for a household in the TOU treatment group. In comparison, the TOU tariff was not found to affect off-peak demand. Households mainly respond to TOU tariffs by shaving peak demand, but not by shifting demand from peak periods to off-peak periods. Thus, TOU pricing also lowers total electricity use. Our findings further suggest that there is no difference in the effects of TOU pricing between weekdays and weekends. Finally, we find no differences in the effectiveness of TOU pricing over time.
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Panels of
1. Foundations of future energy policy
2. Energy efficiency policies: What delivers?
3. Local action and national examples
4. Transport and mobility: How to deliver energy efficiency
5A. Cutting the energy use of buildings: Projects and technologies
5B. Cutting the energy use of buildings: Policy and programmes