Working Paper: NBER ID: w20706
Authors: J. Scott Holladay; Michael K. Price; Marianne Wanamaker
Abstract: In periods of high energy demand, utilities frequently issue "emergency" appeals for conservation over peak hours to reduce brownout risk. We estimate the impact of such appeals using high-frequency data on actual and forecasted electricity generation, pollutant emission measures, and real-time prices. Our results suggest a perverse impact; while there is no significant reduction in grid stress over superpeak hours, such calls lead to increased off -peak generation, CO2 emissions, and price volatility. We postulate that consumer attempts at load shifting lead to this result.
Keywords: energy conservation; electricity generation; CO2 emissions; media coverage
JEL Codes: D04; Q4; Q5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Media coverage of emergency conservation calls (H12) | Increase in electricity generation (L94) |
| Increase in electricity generation (L94) | Increase in CO2 emissions (Q54) |
| Media coverage of emergency conservation calls (H12) | Increase in unpriced externalities (D62) |
| Media coverage of emergency conservation calls (H12) | Net increase in generation during superpeak hours (L97) |
| Increase in electricity generation (L94) | Increase in price volatility (G13) |