Download or read book Responsiveness of Residential Electricity Demand to Changes in Price, Information, and Policy written by Youngsun Baek and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study analyzes consumers' behavioral responsiveness to changes in price and policy regarding residential electricity consumption, using a hybrid method of econometric analyses and energy market simulations with the National Energy Modeling System (NEMS). First, this study estimates price elasticities of residential electricity demand with the most recent Residential Energy Consumption Survey (RECS) data, collected in 2005, employing a conventional econometric model and a discrete/continuous choice model. Prior to the NEMS experiments with price shocks and consumers' behavioral features, this study uses NEMS to examine how energy policies would affect changes in retail electricity price in the future. When climate policies are implemented nationally, electricity prices are estimated to increase by 17% in 2030 with a carbon cap and trade initiatives and by 4% with Renewable Electricity Standards (RES). The short-run elasticity of demand estimated from the 2005 RECS is found to be in a range of -0.81 ~ -0.66, which is more elastic than the current NEMS assumption of -0.15. The 2005 RECS dataset details information about American households' energy consumption. This rich source of micro-level data complements the existing econometric analysis based on time series data.