Working Paper: NBER ID: w25576
Authors: Jesse Burkhardt; Kenneth Gillingham; Praveen K. Kopalle
Abstract: This study examines a field experiment in Texas that includes pricing and informational interventions to encourage energy conservation during summer peak load days when the social cost of generation is the highest. We estimate that our critical peak pricing intervention reduces electricity consumption by 14%. Using unique high frequency appliance-level data, we can attribute 74% of this response to air conditioning. In contrast, we find minimal response to active information provision and conservation appeals. A complementary experimental program also lowers nighttime prices during the off-peak season, providing the first evidence of electric vehicle loadshifting in response to price.
Keywords: electricity consumption; pricing interventions; information provision; field experiment; consumer behavior
JEL Codes: D83; L94; L98; Q41; Q48
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| critical peak pricing (L97) | electricity consumption (L94) |
| critical peak pricing (L97) | air conditioning usage (L97) |
| information provision (L86) | electricity consumption (L94) |
| critical peak pricing (L97) | electric vehicle load-shifting (L97) |
| critical peak pricing (L97) | consumer behavior (D19) |
| time (C41) | treatment effects (C22) |