using field experiments to address environmental externalities and resource scarcity major lessons learned and new directions for future research this article provides an overview of the use of field experiments in energy and resource economics i concentrate on two areas of study field experiments that i speak to the use of dynamic pricing plans to manage the use of electricity and water and ii explore the adoption of energy saving technologies viewed in its totality this work suggests that both neo classical factors such as prices or search costs and behavioural constructs such as salience or social norms influence the use of energy and water for academics the studies reviewed provide a deeper understanding of individual behaviour and the factors that drive the private provision of public goods for policy makers the studies reviewed provide a blueprint outlining ways to combine insights from neo classical and behavioural economics to manage energy water demand and mitigate externalities generated through their use

effects of demand side management on chinese household electricity consumption empirical findings from chinese household survey abstract china s residential electricity demand has grown rapidly over the last three decades and given the expected continued growth demand side management dsm can play an important role in reducing electricity demand by using micro level data collected from 1450 households in 27 provinces in the first ever china residential energy consumption survey in 2012 this study estimates the effects of three dsm measures empirically tiered household electricity pricing china energy label program and information feedback mechanisms we find these measures have contributed to moderating residential electricity demand growth but additional policy reform and tools are needed to increase their effectiveness and impact residential electricity demand is found to be price and income inelastic and tiered pricing alone may not be as effective in electricity conservation the statistically significant relationship between china energy label efficient refrigerators but not televisions and lowered residential electricity consumption reflect mixed program effectiveness lastly of the information feedback currently available through electricity bills payment frequency and meters only meter reader is estimated to be statistically significant important policy implications and recommendations for improving each of these three dsm measures to expand their impact on reducing residential electricity consumption are identified

the demand for residential electricity new evidence on time varying elasticities this study employs a generalized functional form to examine demand for residential electiricity the appropriatenes of the conventional double log and linear forms are tested time varying elasicities are estimated major findings are summarized as follows 1 the double log and linear forms can be rejected at the 0 05 and 0 01 levels respectively 2 long run own price elasticities declined in absolute value consistently from 2 13 to 1 19 during the period 1950 87 3 long run income elasticities also decreased from 1 29 to 0 97 during the same period and 4 long run corss price elasticities with respect to the price of natural gas dropped form 0 40 to 0 29 these results may be heplful to decision makers in determining the change in total revenues owning to the change in prices pricing strategies the effectiveness of energy conservation programmes the effect of rising real income on the demand for residential electricity and future demand

perceived price in residential water demand evidence from a natural experiment abstract under complicated billing structures the price to which consumers respond remains inconclusive in this paper i exploit a quasi experiment to estimate a causal effect of price for residential water customers during the introduction of increasing block rates for a north carolina utility perceived price is identified through a billing anomaly in which changes in marginal and average prices move in opposite directions empirical results contribute evidence that residential water customers respond to average price average price elasticity estimates vary from 0 43 to 1 14 across the distribution of consumption in triple difference models with an estimate of 0 31 in the tightest bandwidth of regression discontinuity specifications

joint estimation of household and heat pump electricity demand statistical methods are applied to analyze metered heat pump and total household loads for residential dwellings the metered loads are combined with other information about the household to study usage patterns equipment energy use is a function of various determining factors and statistical methods are appropriate to reveal the underlying functional relationships a consequence of this approach is that extensive information on households should be gathered whenever metering studies are performed in order to facilitate econometric analysis of the data

does energy consumption respond to price shocks evidence from a regression discontinuity design this paper exploits unique features of a recently introduced tariff schedule for natural gas in buenos aires to estimate the short run impact of price shocks on residential energy utilization the schedule induces a nonlinear and non monotonic relationship between households accumulated consumption and unit prices thus generating exogenous price variation which is exploited in a regression discontinuity design the results reveal that a price increase causes a prompt and significant decline in gas consumption they also indicate that consumers respond more to recent past bills than to expected prices which argues against the assumption that consumers have perfect awareness of complex price schedules

electricity subsidy reform in indonesia demand side effects on electricity use abstract indonesia s budget has for years been burdened by large subsidies for electricity consumption a series of recent reforms has delivered a substantial reduction in these subsidies in this paper we estimate demand side effects of these reforms on electricity use our analysis utilizes a three dimensional dataset covering six consumer groups 16 regions and 1992 2015 we control for various fixed effects and use an instrumental variable approach our estimates suggest that subsidy reductions since 2013 had induced savings in annual electricity use of around 7 relative to the no reform counterfactual as of 2015 the phase out of remaining subsidies has the potential to generate further improvements in the efficiency of electricity use while freeing up resources for other priorities such as infrastructure spending

a new look at residential electricity demand using household expenditure data the recent push for a federal energy policy that could substantially change electricity prices in the u s highlights the need to obtain accurate residential electricity demand estimates many electricity demand estimates have been obtained based on the assumption that consumers optimize with respect to known marginal prices but increasing empirical evidence suggests that consumers are more likely to respond to average prices under this assumption this paper develops a new strategy based on gmm to estimate household electricity demand our approach allows a national level demand estimation from publicly available expenditure data and utility level consumption data complementing studies that use individual billing data which are richer yet often proprietary we estimate the price elasticity near 1 which is at the upper end in magnitude among the estimates from previous studies we apply our elasticity estimates in a u s climate policy simulation to determine how these elasticity estimates alter consumption and price outcomes compared to the more conservative elasticity estimates commonly used in policy analysis

residential consumption of gas and electricity in the u s the role of prices and income abstract we study the residential demand for electricity and gas working with nationwide household level data that cover recent years namely 1997 2007 our dataset is a mixed panel multi year cross sections of dwellings households in the 50 largest metropolitan areas in the united states as of 2008 we estimate static and dynamic models of electricity and gas demand we find strong household response to energy prices both in the short and long term from the static models we get estimates of the own price elasticity of electricity demand in the 0 860 to 0 667 range while the own price elasticity of gas demand is 0 693 to 0 566 these results are robust to a variety of checks contrary to earlier literature metcalf and hassett 1999 reiss and white 2005 we find no evidence of significantly different elasticities across households with electric and gas heat the price elasticity of electricity demand declines with income but the magnitude of this effect is small these results are in sharp contrast to much of the literature on residential energy consumption in the united states and with the figures used in current government agency practice our results suggest that there might be greater potential for policies which affect energy price than may have been previously appreciated

modeling commercial demand for water exploring alternative prices instrumental variables and heterogeneity in this paper we introduce a previously unused instrumental variable to estimate the elasticity of commercial water demand for firms served by a large municipal utility we then present evidence that firms are more responsive to one period lagged average price than marginal price finally we find notable differences in elasticity among different categories of businesses the findings in this paper are particularly important as water utilities consider how to maintain revenue while coping with limited water supplies and increasing commercial demand

measuring the energy savings from home improvement investments evidence from monthly billing data an important factor driving energy policy over the past two decades has been the energy paradox the perception that consumers apply unreasonably high hurdle rates to energy saving investments we explore one possible explanation for this apparent puzzle that realized returns fall short of the returns promised by engineers and product manufacturers using a unique data set we find that the realized return to attic insulation is statistically significant but the median estimate 9 7 is almost identical to a discount rate for this investment implied by a capm analysis we conclude that the case for the energy paradox is weaker than has previously been believed

alternate price specifications for estimating residential water demand with fixed fees using a new model formulation and data from a sample of colorado utilities we investigated the price specification controversy marginal price versus average revenue when estimating residential water demand the improved statistical fit using average revenue as the price variable was shown to be an artifact of the unitary elastic identity created when monthly rate schedules contain a fixed fee when the fixed fee was purged from the data average price was not significant but marginal price remained significant in the preferred double log marginal price model estimated price elasticity was 0 3 and conservation programs had no significant effect on water use

a discrete continuous choice approach to residential water demand under block rate pricing reply waldman is quite correct in noting that the microeconomic theory of block rate pricing in hewitt and hanemann hh 1995 is given for the general case of a k block rate structure whereas the econometric theory is largely confined to the case of exactly two blocks the extension in waldman to the more general case of k blocks is correct although the extension itself could be even more general if it addressed the nonnegativity of demand as is demonstrated below that no apparent attention was paid to the nonnegativity of demand in hh may be attributed to the fact that the need to do so was negated by a fortuitous assumption in the earlier work although that assumption that the errors are multiplicative and lognormally distributed was only maintained and not tested in hh i now estimate two models with the more common assumptions of linear demand and additive and normally distributed errors both with and without a modification for

an empirical survey of residential water demand modelling abstract the increased reliance on demand side management policies as an urban water consumption management tool has stimulated considerable debate among economists water utility managers regulators consumer interest groups and policymakers in turn this has fostered an increasing volume of literature aimed at providing best practice estimates of price and income elasticities quantifying the impact of non price water restrictions and gauging the impact of non discretionary environmental factors affecting residential water demand this paper provides a synoptic survey of empirical residential water demand analyses conducted in the last 25 years both model specification and estimation and the outcomes of the analyses are discussed

response of residential electricity demand to price the effect of measurement error abstract in this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 us states from 1995 to 2007 earlier literature has examined residential energy consumption at the state level using annual or monthly data focusing on the variation in price elasticities of demand across states or regions but has failed to recognize or address two major issues the first is that when fitting dynamic panel models the lagged consumption term in the right hand side of the demand equation is endogenous this has resulted in potentially inconsistent estimates of the long run price elasticity of demand the second is that energy price is likely mismeasured to address these issues we estimate a dynamic partial adjustment model using the kiviet corrected least square dummy variables lsdv 1995 and the blundell bond 1998 estimators we find that the long term elasticities produced by the blundell bond system gmm methods are largest and that from the bias corrected lsdv are greater than that from the conventional lsdv from an energy policy point of view the results obtained using the blundell bond estimator where we instrument for price imply that a carbon tax or other price based policy may be effective in discouraging residential electricity consumption and hence curbing greenhouse gas emissions in an electricity system mainly based on coal and gas power plants

estimation of residential water demand with imperfect price perception using data from a household survey carried out in the french overseas territory of reunion we investigate the price of drinking water perceived by households faced with an increasing multi step pricing scheme to this purpose we use an improved version of the method introduced by shin 1985 to estimate the demand for residential water when consumers are imperfectly informed about their pricing schedule the empirical results suggest that reunion households underestimate the price of water and thus consume more than what is economically rational providing information to households about the marginal price of water may be an innovative means of inducing them to respond to pricing policies designed to promote water conservation

price knowledge in household demand for utility services a household s decision to acquire price knowledge is endogenous in the demand for utility services and may affect elasticities and consumption levels a simultaneous equation model with endogenous switching is developed to evaluate the effects of price knowledge and other sources of heterogeneity results indicate informed households were more responsive to average and marginal price signals informed households also use less water but this is due to heterogeneity rather than price knowledge controlling for heterogeneity price knowledge actually increases monthly water usage the implications of accounting for differences in price knowledge in utility demand modeling and demand management policy are discussed

capital asset price dynamics heterogeneity and hysteresis abstract in this study we investigate the price determination in asset markets with heterogeneous risk neutral investors that face costs of portfolio adjustment we develop a price function mapping stochastic dividends into prices asset prices exhibit hysteresis in the sense that large dividend changes cause a level shift in the relationship between asset prices and dividends moreover the market as a whole reacts as if there was risk aversin the higher the variance of the stochastic process driving the evolution of the dividends the higher is the average expected return in the market

residential electricity demand in spain new empirical evidence using aggregate data this paper presents an empirical analysis on residential demand for electricity this analysis has been performed using aggregate panel data at the province level for 47 spanish provinces for the period from 2000 to 2008 for this purpose we estimated a log log demand equation for electricity consumption using a dynamic partial adjustment approach this dynamic demand function has been estimated using a two step system gmm estimator proposed by blundell and bond 1998 the purpose of this empirical analysis is to highlight some of the characteristics of spanish residential electricity demand particular attention has been paid to the influence of price income and weather conditions on electricity demand the estimated short and long run own price elasticities are negative as expected but lower than 1 furthermore weather variables have a significant impact on electricity demand

electricity demand in multi family renter occupied residences this paper focuses on multi family renter occupied housing where the landlord provides major appliances a large residential sector that has not received widespread attention in the literature experimental data are used from a test where one group of households was billed directly for the electricity they consumed while a control group had unlimited electric service included as part of the monthly rent the empirical analysis yields short run demand estimates that satisfy to a remarkable extent the ceteris paribus assumptions of demand analysis this is the case for two reasons 1 the households did not individually execute the appliance choice decision at various unknown times in the past and 2 the stock of appliances upon which the derived short run demand is conditional is identical for all households in the sample a second important feature is emphasis on functional form examined in some detail is the question of the appropriate functional form for residential electricity demand finally empirical results of the analysis are used to investigate the cost effectiveness and welfare effects of installing submeters in existing multi family residences

urban residential demand for water in the united states further discussion using a new model formulation and data from a sample of colorado utilities we investigated the price specification controversy marginal price versus average revenue when estimating residential water demand the improved statistical fit using average

a review of time use models of residential electricity demand residential electricity demand in most european countries accounts for a major proportion of overall electricity consumption the timing of residential electricity demand has significant impacts on carbon emissions and system costs this paper reviews the data and methods used in time use studies in the context of residential electricity demand modelling it highlights key issues which are likely to become more topical for research on the timing of electricity demand following the roll out of smart metres

an evaluation of the installation of solar photovoltaic in residential houses in malaysia past present and future abstract this paper examines solar energy development in malaysia particularly in relation to the installation of solar photovoltaic pv in residential houses it analyzes the past activities related to solar energy in malaysia in terms of research and developments r ds the implementations used as well as the national policies for the past 20 years which have pushed the installation of pv in the country the feed in tariff fit scheme is discussed showing comparative cost benefit analysis between the pv installation in houses in the united kingdom uk and malaysia and with other investment schemes available in malaysia to investigate the awareness of renewable energy policies and incentives a preliminary survey of the public opinion in malaysia has been carried out and an evaluation of public willingness to invest in the fit scheme by installing the pv on their houses is presented the cost benefit analysis shows that the proposed fit programme is capable of generating good return on investment as compared to the one in the uk but the return is lower than other investment tools the survey suggests that most malaysians are unaware of the government s incentives and policies towards renewable energies and are not willing to invest in the fit scheme

does energy consumption respond to price shocks evidence from a regression discontinuity design does energy consumption respond to price shocks this paper exploits unique features of a recently introduced tariff schedule for natural gas in buenos aires to estimate the short run impact of price shocks on residential energy utilization the schedule induces a non linear and non monotonic relationship between households accumulated consumption and unit prices thus generating an exogenous source of variation in perceived prices which is exploited in a regression discontinuity design the estimates reveal that a price increase in the utility bill received by consumers causes a substantial and prompt decline in gas consumption hence they suggest that policy interventions via the price mechanism such as price caps and subsidies are powerful instruments to influence residential energy utilization patterns even within a short time span

deconstructing the rosenfeld curve making sense of california s low electricity intensity abstract regulatory regimes that have increased household energy efficiency are of widespread interest to policymakers today a prominent example is the state of california where electricity intensities in the residential sector have stayed near constant since the 1970s in sharp contrast to nationwide trends in the united states a structural model of residential energy consumption is used to show that the use of energy intensities alone to evaluate the success of california efficiency programs is misleading and glosses over important policy independent factors we quantify important effects of price climate conditions and demographic characteristics on energy consumption in california we also provide evidence of split incentive considerations in residential energy consumption patterns we conclude that while state policy may have had some effect on efficiency caution needs to be exercised in using the california example to inform expectations from similar measures in other regions

comparing residential water demand estimates under decreasing and increasing block rates using household data using a new model formulation and data from a sample of colorado utilities we investigated the price specification controversy marginal price versus average revenue when estimating residential water demand the improved statistical fit using average

response of residential electricity demand to price in this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 us states from 1995 to 2007 we estimate a dynamic partial adjustment model using the kiviet corrected lsdv 1995 and the blundell bond 1998 estimators in addition to the lagged dependent variable our equation includes energy prices income cooling and heating degree days and average household size we find that the short run own price elasticity of consumption is similar across ldsv bias corrected lsdv and the variant of the blundell bond where we instrument for price the short run elasticity is the lowest when we use the blundell bond gmm approach that treats the price of electricity as exogenous the long term elasticities produced by the blundell bond system gmm methods are largest and that from the bias corrected ldsv is greater than that from the conventional lsdv from an energy policy point of view the results obtained using the blundell bond estimator where we instrument for price imply that there is room in an electricity system mainly based on coal and gas power plants for discouraging residential electricity consumption and curbing greenhouse gas emissions by imposing a carbon tax

price elasticities of residential electricity demand estimates from household panel data in bangladesh abstract we collect a household level panel dataset to estimate the price elasticities of electricity demand for different types of urban households in bangladesh we use an instrumental variable estimation strategy which exploits exogenous variation in average electricity prices induced by a value added tax shock the results indicate significant heterogeneity in price elasticities by electricity consumption levels we conduct a number of simulations under alternative policy scenarios to illustrate how incorporating the heterogeneous nature of price elasticities into pricing policy can help decrease electricity demand supply mismatch and inequality in electricity consumption the results have important policy implications for developing countries aiming to address major energy issues by implementing tariff reforms

perception of price when price information is costly evidence from residential electricity demand a bstract residential electricity consumption is an example of a good for which it is costly to determine marginal price since price changes with the quantity purchased according to multistep block rate schedules this paper investigates the effect of the price information problem on consumers price perceptions an alternative hypothesis of average price perception is tested against the marginal price postulate which assumes wellinformed consumers the model which includes a price perception variable allows the estimation of the price to which consumers actually respond the empirical results support the hypothesis that consumers respond to average price perceived from the electricity bill

residential electricity consumption in seattle abstract recent empirical research for different regions of the united states indicates that residential electricity may be an inferior good whose consumption is negatively correlated with income that is a provocative result that runs counter to what many earlier econometric studies indicate given that it makes sense to examine how electricity consumption behaves in different regional service areas even if residential electricity is an inferior good whose usage declines as income rises there is no guarantee that this will be the case across all service areas this study examines residential electricity consumption for seattle washington the largest metropolitan economy in the northwestern region of the united states results from a dynamic error correction modeling approach indicate that residential electricity consumption reacts in statistically significant manners to changes in real price real income and cold weather in the short run residential electricity is a normal good in this metropolitan economy in the long run residential electricity appears to be an inferior good in seattle all else equal whenever real per capita income growth exceeds 1 2 per capita residential electricity usage declines in seattle

environmental regulation of households an empirical review of economic and psychological factors abstract the literature on sustainable consumption and environmental regulation of household behavior is dominated by conceptual and normative approaches as a result many suggestions lack a firm empirical basis to overcome this deficiency econometric studies in three areas of environmentally relevant activities of households are reviewed residential use of energy generation of solid waste and recycling and residential use of water next to price and income elasticities attention is devoted to individual socio economic features and psychological factors such as attitudes knowledge perceptions and values potential psychological determinants and related insights are further examined by discussing a range of representative and illustrative statistical psychological studies of environmental behavior one important general finding is that there are very few empirical studies that systematically combine socio economic and psychological determinants a range of insights for environmental policy is derived and research recommendations are offered

a model for efficient consumer pricing schemes in electricity markets suppliers in competitive electricity markets regularly respond to prices that change hour by hour or even more frequently but most consumers respond to price changes on a very different time scale i e they observe and respond to changes in price as reflected on their monthly bills in this paper we examine mixed complementarity programming models of equilibrium that can bridge the speed of response gap between suppliers and consumers yet adhere to the principle of marginal cost pricing of electricity we develop a computable equilibrium model to estimate ex ante time of use tou prices for a retail electricity market it is intended that the proposed models would be useful 1 for jurisdictions e g ontario where consumers prices are regulated but suppliers offer into a competitive market 2 for forecasting forward prices in unregulated markets and 3 in evaluation and welfare analysis of the policies regarding regulated tou pricing compared to regulated single pricing

price and income elasticities of residential water demand a meta analysis this article presents a meta analysis of variations in price and income elasticities of residential water demand meta analysis constitutes an adequate tool to synthesize research results by means of an analysis of the variation in empirical estimates reported in the literature we link the variation in estimated elasticities to differences in theoretical microeconomic choice approaches differences in spatial and temporal dynamics as well as differences in research design of the underlying studies the occurrence of increasing or decreasing block rate systems turns out to be important with respect to price elasticities the use of the discrete continuous choice approach is relevant in explaining observed differences

the value of free water analyzing south africa s free basic water policy this paper analyzes south africa s free basic water policy under which households receive a free water allowance equal to the world health organization s recommended minimum of 6 kiloliters per month i structurally estimate residential water demand evaluate the welfare eects of free water and provide optimal price schedules derived from a social planner s problem i use a unique dataset of monthly metered billing data for 60 000 households for 2002 2008 from a particularly disadvantaged suburb of pretoria the dataset contains rich price variation across 18 dierent nonlinear tarischedules and includes a policy experiment which removed the free allowance i nd that without government subsidy the mean monthly consumption would decrease from 12 6 to 5 6 kiloliters which is below the clean water consumption recommended by the who however it is possible to reallocate the current subsidy to form an optimal tari without a free allowance which would increase welfare while leaving the water provider s revenue unchanged this optimal tariwould also reduce the number of households consuming below the who recommended level

effect of price information on residential water demand microeconomic theory predicts that people decrease consumption when price increases the magnitude of the effect depending on price elasticity the law of demand however implicitly assumes that consumers know prices an assumption that is not always satisfied in markets with ex post billing when prices are not transparent elasticity estimates are potentially lower than their full information potential evidence of low price elasticity abounds in residential water demand studies limiting the effectiveness and desirability of using price signals as a conservation tool it is hypothesized that resident s sluggish response to price is partly due to the absence of price information on water bills differences in the informational content of bills are documented for the first time on the basis of sample bills collected from 383 utilities across the usa a standard aggregate water demand model is augmented with qualitative variables describing differences in billing information allowing such variables to a

household responses to increased water rates during the california drought this paper explores the use of fixed effects and maximum likelihood techniques to es timate household responses to water price in creases during the california drought estimates are based on bimonthly meter readings from 599 single family households in the alameda county water district over the period 1982 1992 before and after the introduction of a steeply increasing block rate price structure i find that household and monthly fixed effects models are not success ful in modeling water demand with these data however maximum likelihood models that ex plicitly consider the household s response to the rate structure result in plausible estimates of wa ter demand jel q25

measuring the income elasticity of water demand the importance of publication and endogeneity biases we present the first study that examines the effects of publication selection in the literature estimating the income elasticity of water demand paradoxically more affected by publication selection are the otherwise preferable estimates that control for endogeneity attempting to correct simultaneously for publication and endogeneity biases we find that the mean underlying elasticity is approximately 0 15 or less the result is robust to controlling for more than 30 characteristics of the estimates and accounting for model uncertainty the differences in the reported estimates are systematically driven by differences in the tariff structure regional coverage data granularity and control for temperature

urban water demand with periodic error correction monthly demand for publicly supplied water to u s residences and businesses is estimated from a 10 year panel of 167 cities a periodic error correction model integrates monthly annual and long run time scales statistical consistency is validated by unit root tests adapted to the monthly frequency water and wastewater price elasticity of demand is estimated by sector calendar month and time horizon

information provision and consumer behavior a natural experiment in billing frequency abstract in this study i estimate a causal effect of increased billing frequency on consumer behavior i exploit a natural experiment in which residential water customers switched exogenously from bimonthly to monthly billing customers increase consumption by 3 5 5 in response to more frequent information this result is reconciled in models of price and quantity uncertainty where increases in billing frequency reduce the distortion in consumer perceptions using treatment effects as sufficient statistics i calculate consumer welfare gains equivalent to 0 5 1 of annual water expenditures heterogeneous treatment effects suggest increases in outdoor water use

residential water demand in the northwest of spain a panel of monthly aggregate data from the northwest of spain is used to estimate domestic water demand functions under linear and non linear tariffs price billing climatic and sociodemographic variables are used as explanatory variables the use of intraannual data constitutes a relevant contribution in the european context overall marginal price elasticity estimates lie between 0 12 and 0 17 summer only elasticities and elasticities associated with uses beyond the effectively free allowances seem significantly higher climatic variables significantly affect monthly use although probably less than in other wealthier and drier areas domestic water use appears to be a normal good

potential for pricing policies in water resource management estimation of urban residential water demand in zaragoza spain this paper presents an empirical study to estimate the urban residential water demand in zaragoza spain this allows the testing of the short run sensitivity of water demand to changes in a set of

estimation of japanese price elasticities of residential electricity demand 1990 2007 abstract this paper estimates elasticities of japanese residential price electricity from 1990 to 2007 the first difference generalized method of moment estimator is employed to avoid dynamic panel bias which is not considered in most previous studies the results show that while short run elasticities are similar to those in previous studies long run elasticities are significantly lower in our study we also find that the price elasticity of japanese residential electricity consumption is notably affected by income inequality and severe weather based on these results we provide some insights to tailor environmental taxation so as to effectively attain the kyoto protocol

testing the behavior of rationally inattentive consumers in a residential water market abstract rationally inattentive consumers tend to apply simplified heuristics when making decisions we test the hypothesis of rational inattention in the context of residential water usage where water bills typically account for a small fraction of household expenditures and only attract casual attention we begin by rigorously testing whether or not residential water customers exhibit evidence of rational inattention we then propose a heuristic water demand model to explore the decision making of rationally inattentive consumers and validate the model by comparing the model with the discrete continuous choice model on attentive and fully informed decision makers in out of sample predictions

demand customer base line and demand response in the electricity market a survey the increasing use of demand side management as a tool to reliably meet electricity demands at peak time has stimulated interest among researchers consumers and producer organiza tions managers regulators and policymakers this research reviews the growing literature on models which are used to study demand customer base line cbl and demand response in the electricity market after characterizing the general demand models the cbl based on which the demand response models are studied is reviewed given the experience gained from the review and existing conditions the study combines an appropriate model for each case for a possible application to the electricity market moreover it discusses the implications of the results in the literature these aspects are studied independently the main contribution of this survey is attributed to the treatment of the three issues as sequentially interdependent the review is expected to enhance the understanding of the demand cbl and demand response in the electricity market and their relationships the objective is conducted through a combination of demand and supply side managements in order to reduce demand through different demand response programs during peak times this enables electricity suppliers to save costly electricity generation and at the same time reduce energy vulnerability