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

perishable inventory theory a review this paper reviews the relevant literature on the problem of determining suitable ordering policies for both fixed life perishable inventory and inventory subject to continuous exponential decay we consider both deterministic and stochastic demand for single and multiple products both optimal and sub optimal order policies are discussed in addition a brief review of the application of these models to blood bank management is included the review concludes with a discussion of some of the interesting open research questions in the area

comments on the eoq model for deteriorating items with conditional trade credit linked to order quantity in the supply chain management abstract ouyang et al 2009 consider an economic order quantity eoq model for deteriorating items with a partially permissible delay in payments linked to order quantity basically their inventory model is practical but there are some defects from the logical viewpoints of mathematics in this paper the functional behaviors of the annual total relevant costs are explored by rigorous methods of mathematics a complete solution procedure is also developed to make up for the shortcomings of ouyang et al 2009 in numerical examples it is proved that the new solution procedure could avoid making wrong decisions and causing cost penalties

the optimal ordering policy in a dcf analysis for deteriorating items when trade credit depends on the order quantity abstract in this paper an inventory system for deteriorating items under the conditions of using the discounted cash flows dcf approach to the permissible to delay payment will be considered as a matter of fact the supplier usually is willing to provide the retailer a permissible delay of payments if the retailer orders a large quantity as a result we consider that the delay in payments depends on the quantity ordered that is when the order quantity is less than that at which the delay in payments is permitted the payment for the item must be made immediately otherwise the fixed trade credit period is permitted this paper incorporates all concepts of a dcf approach and the trade credit linked to ordering quantity and develops a new inventory model for deteriorating items to generalize jaggi and aggarwal int j prod econ 34 1994 151

the social ecology of the post fordist global city economic restructuring and socio spatial polarisation in the toronto urban region numerous authors have asserted that globalisation and occupational changes associated with post fordist economic restructuring have led to a growth in intraurban social disparity and even polarisat

do residential customers respond to hourly prices evidence from a dynamic pricing experiment this paper uses the results of a dynamic pricing experiment for households in the district of columbia to determine whether the reduction in demand associated with an hourly price signal is economically different from the demand reduction associated with an equivalent price signal that is four times longer in duration for both regular and all electric customers the percentage demand reduction associated with a given percentage increase in the hourly price is approximately equal to the percentage demand reduction associated with the same percentage price increase of a much longer duration

challenges for wholesale electricity markets with intermittent renewable generation at scale the us experience the supply of intermittent wind and solar generation with zero marginal operating cost is increasingly rapidly in the us these changes are creating challenges for wholesale markets in two dimensions short term energy and ancillary services markets built upon mid twentieth century models of optimal pricing and investment which now work reasonably well must accommodate the supply variability and energy market price impacts associated with intermittent generation at scale these developments raise more profound questions about whether the current market designs can be adapted to provide good long term price signals to support investment in an efficient portfolio of generating capacity and storage consistent with public policy goals the recent experience of the california iso caiso is used to illustrate the impact of intermittent generation on supply patterns supply variability and market based energy prices reforms in capacity markets and scarcity pricing mechanisms are needed if policy makers seek to adapt the traditional wholesale market designs to accommodate intermittent generation at scale however if the rapid growth of integrated resource planning subsidies for some technologies but not others mandated long term contracts and other expansions of state regulation continue more fundamental changes are likely to be required in the institutions that determine generator and storage entry and exit decisions

overcoming salience bias how real time feedback fosters resource conservation inattention and imperfect information bias behavior toward the salient and immediately visible this distortion creates costs for individuals the organizations in which they work and society at l

behavioral study of personalized automated demand response in the workplace abstract this paper presents a quasi randomized controlled trial in a workplace with personalized lighting control and investigates the impact of automated demand response dr on employees it also clarifies what type of conditions will make employees participate in dr to meet this objective we set up four treatment groups opt in performance incentive opt in fixed incentive opt out performance incentive and opt out fixed incentive in the experiment the group with the highest participation rate is the opt out fixed incentive subsequently we estimate two average treatment effects intent to treat and treatment on treated for dr the results reveal a significant reduction in electricity consumption during peak hours for all four treatment groups we find that although the dr participation rate is high for the opt out group its average energy saving effect is not significantly different than that for the opt in group and the average energy saving amount of opt in consumers is larger than that of opt out consumers we also show a similar trade off between the participation rate and the power saving effect for employees participating in dr

default effect versus active decision evidence from a field experiment in los alamos abstract we examine how consumers respond to distinct combinations of preset defaults and subsequent economic incentives a randomised controlled trial is implemented to investigate the demand reduction performance of two electricity pricing programmes opt in and opt out critical peak pricing both the intention to treat and the treatment on the treated are more pronounced for customers assigned to the opt in group and the opt in treatment effects are relatively more persistent over repeated interventions this result suggests that the opt in type active enrolment itself had an impact on customers subsequent behaviour and made them more responsive to the treatment interventions moreover only the opt in treatment has significant effects beyond the treatment time window our results therefore highlight the important difference between an active and a passive decision making process we also estimate a marginal treatment effect model to inform the external validity of our experiment

review of dynamic pricing programs in the u s and europe status quo and policy recommendations with the development of demand response dr technologies and increasing electricity demand dynamic pricing has been a popular topic in many countries this paper evaluates various dynamic pricing programs in the u s and europe and provides insights into various aspects including risks and rewards enabling technologies lower income groups and customer types surrounding programs such as time of use tou critical peak pricing cpp peak time rebates ptr and real time pricing rtp we conclude this paper with three main findings 1 policy coordination in promoting dynamic pricing programs between federal and state regulatory agencies is very critical 2 customer engagement is very important and can be enhanced via more accessible educational programs and policy adjustments and 3 more investment in related r d is required to construct a commonly accepted methodology for measuring the effectiveness of dynamic pricing programs

socio tenurial polarization in the united kingdom 1953 83 the income evidence family expenditure survey data show a widening gap between the incomes of households in different tenures during the period 1953 to 1983 in particular a major gap has opened up between the two major tenures as the median income of owner occupied households relative to the national average has risen whereas that for local authority tenants has fallen sharply recent years have seen an acceleration of these trends and the local authority sector is now increasingly characterised by those on low incomes

impact measurement of tariff changes when experimentation is not an option a case study of ontario canada abstract this paper presents the first year results of a three year study that was designed to measure the impact of time of use rates in the canadian province of ontario unlike prior studies which have analyzed such impacts in an experimental setting featuring the randomized allocation of customers to treatment and control groups this study deals with a situation where the deployment of time of use rates was not experimental in nature it was part of a full scale program by carefully drawing samples across four local distribution companies we were able to interpret the study as a natural experiment and construct control groups and treatment groups we used the addilog model of consumer demand to estimate elasticities of substitution between peak mid peak and off peak periods the addilog model includes as a special case the constant elasticity of substitution model that has been widely used in the literature on customer response to time of use rates the estimated elasticities are well behaved and consistent with those found in the literature

smart meter devices and the effect of feedback on residential electricity consumption evidence from a natural experiment in northern ireland abstract using a unique set of data and exploiting a large scale natural experiment we estimate the effect of real time usage information on residential electricity consumption in northern ireland starting in april 2002 the utility replaced prepayment meters with advanced meters that allow the consumer to track usage in real time we rely on this event account for the endogeneity of price and payment plan with consumption through a plan selection correction term and find that the provision of information is associated with a decline in electricity consumption of 11 17 we find that the reduction is robust to different specifications selection bias correction methods and subsamples of the original data the advanced metering program delivers reasonably cost effective reductions in carbon dioxide emissions even under the most conservative usage reduction scenarios

is australia s home ownership rate really stable an examination of change between 1975 and 1994 australia has exhibited a remarkably stable home ownership rate of 70 per cent for over thee decades however this paper questions whether this rate is sustainable decomposition techniques based on tenure choice models are used to provide evidence of changing homeownership patterns in australia between 1975 and 1994 the results indicate a distinct change in home ownership propensities which is neither uniform across age groups nor uniform for different household types with both the same and with different levels of income a number of tentative explanations are proposed each of which provides the basis for further research on the factors affecting household tenure decisions this is essential if the potential for a significant decline in home ownership is to be seen as a matter of concern

investment incentives for flexible demand options under different market designs abstract this paper analyzes investment incentives for flexible manufacturing facilities under different market designs we propose a multi stage equilibrium model incorporating endogenous determination of generation capacity investment network expansion and redispatch based on the model introduced by grimm et al 2016 including flexibilization of industrial electricity consumption the model allows to investigate incentives for flexibilization and the impact of flexible industrial electricity consumers on the system an application to the german electricity market reveals that flexible industrial electricity consumption can be profitable for firms if the share of flexible electricity consumers is high price fluctuations are mitigated which lowers the individual cost savings from demand flexibility comparing different market designs positive impacts of flexible electricity demand on the system are observed in both the system optimum and the market equilibrium in scenarios with flexible industrial electricity consumption welfare is considerably higher than in those without this is due to lower electricity costs of industrial consumers but more importantly due to less investment in conventional power generation as well as a reduced transmission network expansion however a comparison of nodal and uniform pricing underlines the importance of regional price signals with respect to an efficient allocation of flexible industrial demand

the optimal inventory policies under permissible delay in payments depending on the ordering quantity abstract this paper deals with the problem of determining the economic order quantity under conditions of permissible delay in payments the delay in payments depends on the quantity ordered when the order quantity is less than the quantity at which the delay in payments is permitted the payment for the item must be made immediately otherwise the fixed trade credit period is permitted the minimization of the total variable cost per unit of time is taken as the objective function an algorithm to determine the economic order quantity is developed the results obtained in this paper generalize some already published results

joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two level partial trade credits in supply chain abstract this paper develops an inventory model for deteriorating items under a two level partial trade credit with allowable shortages this paper considers a supplier retailer customer supply chain in which a for settling the cost of purchasing the retailer receives a partial trade credit from the supplier and at the same time the retailer offers a separate partial trade credit to the customer b the downstream credit period not only increases demand but also opportunity cost c the deterioration rate is non decreasing over time and the product is fully deteriorated close to its expiration date and d shortages are allowed the objective of the problem is to determine the optimal selling price the optimal replenishment cycle time and the time taken for the inventory to reach zero at the same time such that the total profit per unit is maximized theoretical results are established a numerical example is provided to illustrate the theoretical results and yield some managerial insights

economic order quantity under conditionally permissible delay in payments abstract within the economic order quantity eoq framework the main purpose of this paper is to investigate the retailer s optimal replenishment policy under permissible delay in payments all previously published articles dealing with optimal order quantity with permissible delay in payments assumed that the supplier only offers the retailer fully permissible delay in payments if the retailer ordered a sufficient quantity otherwise permissible delay in payments would not be permitted however in this paper we want to extend this extreme case by assuming that the supplier would offer the retailer partially permissible delay in payments when the order quantity is smaller than a predetermined quantity under this condition we model the retailer s inventory system as a cost minimization problem to determine the retailer s optimal inventory cycle time and optimal order quantity three theorems are established to describe the optimal replenishment policy for the retailer some previously published results of other researchers can be deduced as special cases finally numerical examples are given to illustrate all these theorems and to draw managerial insights

social segregation housing tenure and social change in dutch cities in the late 1980s contemporary debates about social polarisation and divided cities emphasise common influences on social and economic change in cities the development of a global economy and of global influences on both market systems and on public policy regimes encourages an expectation that there is a convergence in processes and policies affecting cities and a convergence in outcomes in terms of increasingly similar patterns of polarisation and division this paper considers data from britain and the netherlands relating to changes in the housing sector and to social segregation and indicates that emerging patterns are very different socio tenurial polarisation and social segregation are not as marked in the netherlands as in britain and are not changing as fast the discussion arising from these data suggests that concern with globalisation and common influences on change should be balanced with a recognition of the importance of other factors in determining the pattern and pace of change in cities within this it is important to recognise not just differences in housing finance and policy but the degree of social and income inequality and the wider functioning of the welfare state

an eoq model with deteriorating items under inflation when supplier credits linked to order quantity abstract this study proposes an inventory model under a situation in which the supplier provides the purchaser a permissible delay of payments if the purchaser orders a large quantity shortages are not allowed and the effect of the inflation rate deterioration rate and delay in payment are discussed as well as a result in this paper we establish an eoq model for deteriorating items under inflation when the supplier offers a permissible delay to the purchaser if the order quantity is greater than or equal to a predetermined quantity we then characterize the optimal solution and provide an easy to use algorithm to find the optimal order quantity and replenishment time finally some numerical examples are given to illustrate the theoretical results and made the sensitivity analysis of parameters on the optimal solutions

dynamic salience with intermittent billing evidence from smart electricity meters abstract digital tracking and the proliferation of automated payments have made intermittent billing more commonplace and the frequency at which consumers receive price quantity or total expenditure signals may distort their choices while this category of goods has expanded from household utilities toll road access and software downloads to standard consumption goods paid by credit card or other bill me later type systems we know surprisingly little about how these payment patterns affect decisions this paper exploits hourly household electricity consumption data collected by smart electricity meters to examine dynamic consumer behavior under intermittent expenditure signals households reduce consumption by 0 6 1 following receipt of an electricity bill but the response varies considerably by household type and season our results also suggest that spending reminders can reduce peak demand particularly during summer months we discuss the implications for energy policy when intermittent billing combined with inattention induces consumption cycles

an economic order quantity model for deteriorating items with partially permissible delay in payments linked to order quantity abstract to attract more sales suppliers frequently offer a permissible delay in payments if the retailer orders more than or equal to a predetermined quantity w in this paper we generalize goyal s k 1985 eoq under conditions of permissible delay in payments journal of the operational research society 36 335 338 economic order quantity eoq model with permissible delay in payment to reflect the following real world situations 1 the retailer s selling price per unit is significantly higher than unit purchase price 2 the interest rate charged by a bank is not necessarily higher than the retailer s investment return rate 3 many items such as fruits and vegetables deteriorate continuously and 4 the supplier may offer a partial permissible delay in payments even if the order quantity is less than w we then establish the proper mathematical model and derive several theoretical results to determine the optimal solution under various situations and use two approaches to solve this complex inventory problem finally a numerical example is given to illustrate the theoretical results

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