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Note on measuring household welfare effects of Time-Of-Use (TOU) pricing

Journal Article · · Energy J.; (United States)
Several recent studies address the issue of household welfare effects caused by the implementation of time-of-use (TOU) pricing of electricity. In these studies, the historical average price is used to assess the household welfare change. Most studies on the demand for electricity under TOU pricing assume that a household's preference is separable, so that electricity use in different time periods can be aggregated into a consistent quantity index. Using the separability assumption, this note proposes a measure of welfare change due to a switch from multitier to TOU pricing. It also shows how this measure can be applied with out conducting a TOU experiment. 26 references.
Research Organization:
Sacramento Municipal Utility District, CA
OSTI ID:
6771004
Journal Information:
Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 5:3; ISSN ENJOD
Country of Publication:
United States
Language:
English