scholarly journals Residential Electricity Consumers and Increasing Block Pricing Policy in Pakistan: Evidence Based on Household Level Primary Data

2021 ◽  
Vol 3 (2) ◽  
pp. 80-87
Author(s):  
Sania Malik
Keyword(s):  
Electricity Consumption ◽  
Income Group ◽  
Point Of View ◽  
Primary Data ◽  
Electricity Pricing ◽  
Pricing Policy ◽  
Household Level ◽  
Residential Sector ◽  
Electricity Use ◽  
Residential Electricity

The purpose of this paper is to explore the efficacy of increasing block electricity pricing (IBEP) which was imposed in 2013 by the Pakistani government. The main objective of this policy is rational resource allocation and to lower the cross-subsidization to the residential sector by two other major sectors such as commerce and industry. The study is based on primary data which is collected through questionnaires from four tehsils of district Sargodha in rural as well as the urban regions. About 54.6% of households understand the electricity price scheme (IBEP) while urban users are more aware as compared to rural but urban electricity consumption is higher due to high use of home appliances. By using the regression model the elasticity of residential electricity consumption is estimated for heterogeneous consumers. The upper blocks of electricity consumption are more sensitive to price increases (e.g., the elasticity of the first to fourth block is -0.391, -0.988, -1.229, -0.955 respectively) except in the fifth block (-0.489) which indicates that higher income group pays more attention to the standard of living. The increase in the number of trees also affects the price elasticity of residential electricity use and positively influences saving behaviour. The policy which was implemented from a welfare point of view has achieved its target to a certain extent. Future guidelines for the up-gradation of electricity pricing reform in the residential sector are thus proposed.

scholarly journals Estimating Elasticity for Residential Electricity Demand in China

2012 ◽  
Vol 2012 ◽  
pp. 1-6 ◽  
Author(s):  
G. Shi ◽  
X. Zheng ◽  
F. Song
Keyword(s):  
Low Income ◽  
Rural Families ◽  
Electricity Consumption ◽  
Income Group ◽  
Electricity Demand ◽  
Policy Implications ◽  
High Income Group ◽  
Household Level ◽  
Residential Electricity ◽  
Residential Demand

Residential demand for electricity is estimated for China using a unique household level dataset. Household electricity demand is specified as a function of local electricity price, household income, and a number of social-economic variables at household level. We find that the residential demand for electricity responds rather sensitively to its own price in China, which implies that there is significant potential to use the price instrument to conserve electricity consumption. Electricity elasticities across different heterogeneous household groups (e.g., rich versus poor and rural versus urban) are also estimated. The results show that the high income group is more price elastic than the low income group, while rural families are more price elastic than urban families. These results have important policy implications for designing an increasing block tariff.

scholarly journals System Dynamics Modeling of Lighting Electricity Demand in the Urban Residential Sector of Nepal

2016 ◽  
Vol 23 (1-2) ◽  
pp. 33-54 ◽  
Author(s):  
Iswor Bajracharya ◽  
Nawraj Bhattarai
Keyword(s):  
System Dynamics ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Point Of View ◽  
Incandescent Lamp ◽  
Reference Scenario ◽  
System Dynamics Modeling ◽  
Dynamics Modeling ◽  
Residential Sector ◽  
Expansion Planning

A significant portion of the total electricity is consumed in the residential sector of Nepal, mainly for lighting purpose. In this study, a model has been developed using the concept of system dynamics to analyze the dynamics of the changes in the urban residential lighting electricity demand up to the year 2030. A system dynamics modeling tool, Venism, has been used for this purpose. This study is useful for the utilities of companies for the power capacity expansion planning. Altogether three different scenarios have been developed. They are Reference Scenario (Ref), LED Lamp (LL) Scenario and Incandescent Lamp Remove (ILR) Scenario. The study has shown that lighting electricity consumption has already been in the decreasing trend due to the increasing use of Clear Fluorescent Lamp (CFL) and will be the minimum somewhere in the year between 2021 and 2022. Only a small portion of the total electricity will be consumed for lighting the household in the urban residential sector of Nepal in the coming decade. Therefore, government should focus the urban energy efficiency program for other uses of electricity such as cooking, water heating and water pumping etc. so that a significant amount of electricity can be saved in the urban households of Nepal. This study has also shown that there is no difference between the use of CFL and LED lamps from the energy saving point of view. Therefore, like the case of incandescent lamp and CFL, there is no need to encourage the people to buy LED lamp instead of CFL.The Journal of Development and Administrative Studies (JODAS)Vol. 23(1-2), pp. 33-54

scholarly journals Understanding Residential Electricity Consumption Considering Energy Efficiency Policies and The Impact On the Electricity System

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Meryem Tumbuz ◽  
Hatice Muğlkoç
Keyword(s):  
Energy Efficiency ◽  
Behavioral Change ◽  
Electricity Consumption ◽  
Allocation Problem ◽  
General View ◽  
Electricity Use ◽  
Generation Cost ◽  
Residential Electricity ◽  
Energy Efficiency Policies ◽  
The Impact

Electricity consumption increases substantially over the years where residential use significantly contributes to the overall consumption. The growth in the population and variety of home appliances together with increasing comfort levels of the people results in higher levels of residential electricity use. In fact, nearly one fourth of Turkey's total electricity consumption is due to the domestic use. To achieve global sustainability targets and reduce the overall electricity use, focusing on the domestic consumption is crucial. In this research, the energy consumptions patterns of households are determined to identify the potential electricity savings existing in the residential sector. Moreover, specific policy recommendations, which can promote the behavioral change, are driven by measuring the responsiveness of people to different measures and the combinations of these measures such as information, feedback, rewards, and social influences. A survey was conducted to determine the patterns and the responsiveness of the residential customers. The results obtained from the survey are used to depict a general view of Turkish households towards electricity consumption behaviors and their energy efficiency attitudes. Responses indicate there should be more regulations and improvements in energy policy. An electricity allocation problem is solved in order to see possible impacts of behavioral change measures on the network. Scenarios are defined for each policy and allocation problem is solved to see the possible generation cost reduction. Also, gas emissions for each scenario is recorded to understand the possible effects of policies on the environment. Results show that behavioral change studies seem to be well worth to study. In order to reach residential efficiency, possible policy alternatives are suggested for Turkish households.

scholarly journals Increasing Block Rate Electricity Pricing and Propensity to Purchase Electrical Appliances: Evidence from a Natural Experiment in Russia

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 6954
Author(s):  
Salim Turdaliev
Keyword(s):  
Panel Data ◽  
Empirical Evidence ◽  
Natural Experiment ◽  
Electricity Pricing ◽  
Energy Policies ◽  
Difference In Differences ◽  
Household Level ◽  
Percentage Points ◽  
Residential Electricity ◽  
The Relationship

This paper provides empirical evidence on the relationship between the increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electrical appliances. I use a variation from a natural experiment in Russia that introduced IBR pricing for residential electricity in a number of experimental regions in 2013. The study employs household-level panel data, which records, among others, whether the household has purchased any major electrical appliances during the last three months. Using a difference-in-differences specification, I show that the purchase of major electrical appliances in the regions with IBR pricing has increased by more than 20% (or more than two percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behaviour of households.

scholarly journals Adaptive Responses to Climate Change: The Effects of Temperature Levels on Residential Electricity use in China

2021 ◽  
Author(s):  
Meixuan Teng ◽  
Hua Liao ◽  
Paul J. Burke ◽  
Tianqi Chen ◽  
Chen Zhang
Keyword(s):  
Climate Change ◽  
Rural Areas ◽  
Geographical Area ◽  
Electricity Consumption ◽  
Data Availability ◽  
Maximum Temperature ◽  
Adaptive Responses ◽  
The North ◽  
Electricity Use ◽  
Residential Electricity

Abstract Rising temperaturesare likely to boost residential demand for electricity in warm locationsdue toincreased use of air-conditioners, fans, and refrigeration. Yet the precise effect of temperatureson residential electricity use may vary by geographical area and with socio-economic conditions. Knowledge on this effectin developing countries is limited due to data availability and reliability issues. Using a high-quality provincial-level monthly datasetfor China and fixed-effect panel methods,we find aU-shaped and asymmetrical relationship between ambient temperature and monthly household electricity use.An additional day with a maximum temperature exceeding 34°C on average results in a 1.6% increase in monthlyper capita household electricity use relative to if that day’s maximum temperature had been in the 22­–26°C range. The effect of an additional cold day is smaller. There are differencesin effectsfor the south and the north of China and in urban versus rural areas. We estimate that temperature increases associated with climate change will lead to about a 3–5% increase in annual household electricity consumption by the end of the century under different carbon emission trajectories according to the projectionsin the 2021IPCC report. The estimated effect is larger for summer months.

scholarly journals The Aggregate and Residential Electricity Demand in Indonesia

2018 ◽  
Vol 26 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Zulfizal Arnaz
Keyword(s):  
Fixed Effects ◽  
Dynamic Models ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Point Of View ◽  
Least Square ◽  
Price Elasticities ◽  
Long Run ◽  
Residential Electricity ◽  
Number Of Customers

This paper presents an empirical analysis on electricity demand in Indonesia applying a double-log demand equation for aggregate and residential. This proposes static and dynamic models employing fixed effects and bias-corrected least square dummy variable estimators, respectively. Particular attention is paid to the effects of income, price, and the numbers of customers. The paper concludes that all regressors function as the determinants of electricity consumption. Price elasticities are inelastically negative as expected, and further, profound inelastic for residential. Meanwhile, income level and the number of customers are quite elastic for both models. In addition, interregional analysis reports the differential impacts of the price on energy consumption between Java Bali and non-Java Bali regions, showing less responsiveness of consumption to price in Java Bali. The long-run estimates give information on modest values of price elasticities for aggregate and residential. From an energy policy point of view, electricity price would be moderately effective in achieving efficiency and conservation programs. On the other hand, it gives an economic rationale for tariff adjustment and region-based tariff restructuring.

scholarly journals DEFAULT EFFECTS AND FOLLOW-ON BEHAVIOR: EVIDENCE FROM AN ELECTRICITY PRICING PROGRAM

2021 ◽  
Author(s):  
Meredith Fowlie ◽  
Catherine Wolfram ◽  
Patrick Baylis ◽  
C Anna Spurlock ◽  
Annika Todd-Blick ◽  
...  
Keyword(s):  
Large Scale ◽  
Controlled Trial ◽  
Electricity Consumption ◽  
Welfare Effects ◽  
Time Varying ◽  
Program Participation ◽  
Electricity Pricing ◽  
Randomized Controlled ◽  
Opt Out ◽  
Residential Electricity

Abstract We study default effects in the context of a residential electricity-pricing program. We analyze a large-scale randomized controlled trial in which one treatment group was given the option to opt-in to time-varying pricing while another was defaulted into the program but allowed to opt-out. We provide dramatic evidence of a default effect on program participation, consistent with previous research. A novel feature of our study is that we also observe how the default manipulation impacts customers’ subsequent electricity consumption. Passive consumers who did not opt-out but would not have opted in — comprising more than 70 percent of the sample — nonetheless reduce consumption in response to higher prices. Observation of this follow-on behavior enables us to assess competing explanations for the default effect. We draw conclusions about the likely welfare effects of defaulting customers onto time-varying pricing.

DEVELOPMENT AND THE IMPACT OF CLIMATE CHANGE ON ENERGY DEMAND: EVIDENCE FROM BRAZIL

2010 ◽  
Vol 01 (03) ◽  
pp. 187-208 ◽  
Author(s):  
GUILHERME DEPAULA ◽  
ROBERT MENDELSOHN
Keyword(s):  
Climate Change ◽  
Low Income ◽  
Energy Demand ◽  
Electricity Consumption ◽  
Low Latitude ◽  
Cross Sectional ◽  
Electricity Use ◽  
Long Run ◽  
Residential Electricity ◽  
The Impact

This paper investigates the effects of climate on residential electricity use for households from different income classes in Brazil. Using cross-sectional data, the study finds that the temperature elasticity of electricity consumption varies significantly across income classes. The temperature elasticity of low income households is not significantly different from zero but middle and high income families have a long run temperature elasticity of 0.8 and 1.6 respectively. As emerging low latitude countries develop and incomes rise, the welfare damages of warming in the energy sector will become substantial.

scholarly journals The Sensitivity of Residential Electricity Demand in Indonesia

2018 ◽  
Vol 7 (2) ◽  
pp. 247-266
Author(s):  
Stranti Nastiti Kusumaningrum
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Electricity Prices ◽  
Pricing Policy ◽  
Residential Electricity ◽  
The Government ◽  
The Impact ◽  
Quantile Regression Method

Since 2013, the residential electricity price for High VA (Volt-Ampere) households has changed due to changes in pricing policies. This paper analyzes the responsiveness of residential electricity demand to the change in electricity prices and income among two different household groups (Low VA and High VA) in 2011 and 2014. Using an electricity consumption model and the Quantile Regression method, the results show that residential electricity demand is price and income inelastic. Income elasticity is lower than price elasticity. Furthermore, the effects on price elasticity also found in the Low VA group, whose rate remained stable. At the same time, evidence proves the impact of the change in pricing policy on income elasticity remains unclear. This result implies that the government has to be more careful in regulating electricity prices for the low VA group, while maintaining economic stability.DOI: 10.15408/sjie.v7i2.6048

scholarly journals Impact of the Lockdown during the COVID-19 Pandemic on Electricity Use by Residential Users

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 980
Author(s):  
Sławomir Bielecki ◽  
Tadeusz Skoczkowski ◽  
Lidia Sobczak ◽  
Janusz Buchoski ◽  
Łukasz Maciąg ◽  
...  
Keyword(s):  
Peak Power ◽  
Energy Exchange ◽  
Electricity Consumption ◽  
Social Experiment ◽  
Digital Competence ◽  
Electricity Use ◽  
Power Smoothing ◽  
Residential Electricity ◽  
Housing Estates ◽  
Demand Side Response

The COVID-19 pandemic and the associated lockdown can be regarded as a forced social experiment, the results of which show how to use energy under specific conditions. During this period, there was a reduction in electricity consumption at the level of the power system, but a different specificity distinguishes the group of household users. The article aims at presenting and analysing the identified issues concerning residential electricity users based on the experience from the COVID-19 pandemic lockdown. Data from energy meters from almost 7000 flats in Warsaw’s housing estates during the lockdown in 2020 and the analogous period before the pandemic were used. The analysis showed that, on average, residential users staying practically the whole day in their flats increased their energy consumption, but without increasing their average daily peak power, smoothing the profile in the morning hours to the level reaching the peak power that had occurred in the analogous period before the lockdown. The peak power of the sections feeding the different numbers of dwellings also remained practically unchanged during the lockdown compared to the pre-pandemic period. The pressure to work and educate remotely should contribute to an increase in the digital competence of society, which may result in an increased interest in new forms of activity and cooperation based on demand-side response and prosumption mechanisms, with digital settlements for energy exchange and services.

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