Authors: Frondel, Manuel
Kussel, Gerhard
Title: Switching on electricity demand response: Evidence for German households
Language (ISO): en
Abstract: Empirical evidence on the response of German households to electricity price changes is sparse. Using panel data originating from Germany’s Residential Energy Consumption Survey (GRECS), we fill this void by employing an instrumental variable approach to cope with the endogeneity of the consumers’ tariff choice. By additionally exploiting our information on the households’ knowledge about power prices, we also employ an Endogenous Switching Regression Model to estimate price elasticities for two groups of households, finding that only those households that are informed about prices are sensitive to price changes, whereas the electricity demand of uninformed households is entirely price-inelastic.
Subject Headings: price elasticity
information
switching regression model
URI: http://hdl.handle.net/2003/35300
http://dx.doi.org/10.17877/DE290R-17343
Issue Date: 2016
Appears in Collections:Sonderforschungsbereich (SFB) 823

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