Electricity Demand in Multi-Family, Renter-Occupied Residences

Munley, Vincent G.; Taylor, Larry W.; Formby, John P.

doi:10.2307/1060488

Cited by 31 publications

(17 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The computed price elasticity of demand for Barbadian households was -0.778, which was somewhat lower than that obtained by Houthakker (1951), but in line with studies which also use less aggregated data (Parti & Parti, 1980;Dubin & McFadden, 1984;Munley, Taylor, & Formby, 1990;Maddock, Castano, & Vella, 1992). For electric water heating, the price elasticity of demand fell to -0.756, suggesting that these households tend to be less price sensitive relative to the average Barbadian household.…”

Section: Electricity Demand Functionsupporting

confidence: 74%

Price reform and household demand for electricity

Carter¹,

Craigwell²,

Moore³

2012

Journal of Policy Modeling

View full text Add to dashboard Cite

Section: Electricity Demand Functionsupporting

confidence: 74%

Price reform and household demand for electricity

Carter¹,

Craigwell²,

Moore³

2012

Journal of Policy Modeling

View full text Add to dashboard Cite

“…The absolute reduction of 1,600 kWh/y and apartment, however, is unaffected by choice of reference consumption. The estimated reduction in EEC is larger than what has been found in previous studies (6,7). This difference is worth noting given that studies have found relatively low electric energy price elasticities for tenants who only pay for consumption through appliances and do not pay for heating or cooling (7,8).…”

Section: Resultsmentioning

confidence: 60%

“…The strategy is also becoming more and more widely used. It is, therefore, quite surprising that only a few small-scale studies have evaluated this strategy according to scientific standards (6,7). Although these studies have found substantial reductions in EEC, they were based on small samples with limited possibilities to characterize the mechanisms at play.…”

mentioning

confidence: 99%

Consequences of a price incentive on free riding and electric energy consumption

Elinder

Escobar

Petré

2017

Proc. Natl. Acad. Sci. U.S.A.

View full text Add to dashboard Cite

This article shows that a simple monetary incentive can dramatically reduce electric energy consumption (EEC) in the residential sector and simultaneously achieve a more desirable allocation of EEC costs. The analyses are based on data from a policy experiment conducted in 2011 and 2012 by a private housing company in about 1,800 apartments. Roughly 800 of the tenants (treatment group) were subject to a change from having unlimited EEC included in their rent to having to pay the market price for their own EEC. This change was achieved by installing EEC meters in each apartment. Tenants in the other 1,000 apartments (control group) experienced no policy change and were subject to apartment-level billing and metering during the entire study period. Using a quasiexperimental research design and daily data on EEC from 2007 to 2015, we estimate that apartmentlevel billing and metering permanently reduce EEC by about 25%. Moreover, we show that households reduce EEC immediately after being informed that they will be billed for EEC, the reduction is larger when the production cost is higher, and the reduction in EEC comes almost exclusively from households with very high EEC before the policy change. Finally, we show that apartment-level billing and metering are cost-effective, with a cost per reduced kilowatt hour of US$0.01, and for each invested dollar, the social value of reductions in air pollution, including CO 2 emissions, is $2.sub metering | environment | smart meters | energy conservation | quasiexperiment L imiting adverse effects on individuals and societies from climate change requires effective governance of the global environment (1). Because current private incentives to reduce energy consumption are weaker than the collective incentives to prevent global warming (and other negative side effects of energy consumption), the problem can be described as a tragedy of the commons (2). Societies throughout history have used different strategies to overcome the commons problem (3). Although it has proved easier to develop effective strategies for management of local public goods (commons) than global public goods, like the climate, ineffective management at the local level still contributes to massive overuse of energy.In this article, we evaluate the effectiveness of a well-defined strategy-apartment-level billing and metering-to handle this local commons problem. Tenants in many housing areas are allowed to consume unlimited electric energy without paying the costs of their own consumption. With this type of contract between the tenant and the landlord, the landlord typically pays the utility bills and adds a fixed share of the total costs to the rent of each tenant. When unlimited consumption of electric energy (or other resources; e.g., water or heating) is included in the rent for tenants, they have no monetary incentive to reduce consumption, because the cost of their consumption is typically shared among a large number of tenants.As shown below, solving this local problem can help us manage global probl...

show abstract

“…In relation to the socio-economic factors, the review identified that more occupants [11,13,14,18,19,22,23,25,27,29-31,33,36-38, 41,43,44], the presence of teenagers [12,30,33,45], increased household income [6,14,17,18,22,[26][27][28]30,31,33,37,38,41,42,[44][45][46] and increased disposable income [3,19,23,25,36] lead to a significant increase (positive effect) in domestic electricity consumption. The number of studies that confirmed a positive effect was higher (at least three studies more) than the number indicating a significant negative or non-significant effect.…”

Section: Socio-economic and Dwelling Factors Affecting Domestic Electmentioning

confidence: 99%

Determinants of high electrical energy demand in UK homes: Socio-economic and dwelling characteristics

Jones

Lomas

2015

Energy and Buildings

106

View full text Add to dashboard Cite

a b s t r a c tThis paper provides an analysis of the socio-economic and dwelling factors contributing to high electrical energy demand in UK domestic buildings. The socio-economic, dwelling and electricity consumption data were collected during a large-scale, city-wide survey, carried out in Leicester, UK, in 2009-2010. Annual electrical energy demand was estimated for 315 dwellings and an odds ratio analysis used to identify the socio-economic and dwelling factors that led to high electricity consumption. The effects of a number of socio-economic and dwelling factors which have not previously been studied for the UK domestic sector are included. Thus, for the first time, presence of teenagers, having electric space heating as the primary form of heating, portable electric heating and electric water heating were identified as significant drivers of high electricity demand in UK homes. The employment status and education level of the Household Representative Person, the number of floors in a dwelling, presence of fixed electric heating, and the proportion of low-energy lighting were shown to have no effect on high electricity consumption in UK homes. Given the impetus to reduce electricity consumption and CO 2 emissions from the domestic sector, these observations can help shape energy saving campaigns and future energy policy.

show abstract

Electricity Demand in Multi-Family, Renter-Occupied Residences

Cited by 31 publications

References 23 publications

Price reform and household demand for electricity

Price reform and household demand for electricity

Consequences of a price incentive on free riding and electric energy consumption

Determinants of high electrical energy demand in UK homes: Socio-economic and dwelling characteristics

Contact Info

Product

Resources

About