Pushing the Envelope on Rate Design

Economic analysis of transmission enhancement through merchant projects

“…According to economic theory, a transmission rate should send the correct economical signal to achieve the most efficient use of the transmission grid [59]- [60]- [61]- [63]- [68]. It is note that LMPs provide the appropriate short term signals to use the grid but not the long term signals for the grid enhancement.…”

Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey

“…(ii) There is no effective sharing of price information with consumers. The availability of information in a comprehensive form is found to be very important to consumers' abilities to respond to price signals (Faruqui and George, 2006;Reiss and White, 2005). (iii) Our survey began in the winter of 2012, only six months after the implementation of the TPHE when many consumers were still unaware of the new tier structure which caused the lag of policy's effects.…”

Asymmetric Incentives in Subsidies: Evidence from a Large-Scale Electricity Rebate Program

“…Opponents of the program have questioned its fairness and e↵ectiveness. For example, Faruqui and George (2006) note that while the program is politically popular, it is unlikely to be e↵ective for energy conservation. One concern is that the program does not incorporate weather di↵erences between the base year and the target year.…”