Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263410 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15194
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine heterogeneity in Norwegian households' price responses to critical peak pricing (CPP) on electricity consumption, using a large-scale randomized controlled trial (RCT), high-frequency electricity data, and default enrollment. Increasing the grid transmission charge by 4,067% (corresponding to an increase in the electricity price by 1,242%) leads to a 12.5% reduction in consumption, and virtually eliminates the consumption "peak". In contrast to prior studies from less electrified countries, the effect is broad-based, and similar across income groups. These findings provide a unique lens into the effectiveness of demand-based policies, and their impact across household groups, in a more electrified future.
Subjects: 
critical peak pricing
grid transmission charge
peak demand
household heterogeneity
RCT
default enrollment
electrification
JEL: 
C93
D12
L94
Q41
Document Type: 
Working Paper

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