Browsing by Subject "Electricity consumption"

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Essays on regulatory impact in electricity and internet markets
(2014-05) Roderick, Thomas Edward; Ryan, Stephen (Stephen P.)
This dissertation details regulation's impact in networked markets, notably in deregulated electricity and internet service markets. These markets represent basic infrastructure in the modern economy; their innate networked structures make for rich fields of economic research on regulatory impact. The first chapter models deregulated electricity industries with a focus on the Texas market. Optimal economic benchmarks are considered for markets with regulated delivery and interrelated network costs. Using a model of regulator, consumer, and firm interaction, I determine the efficiency of the current rate formalization compared to Ramsey-Boiteux prices and two-part tariffs. I find within Texas's market increases to generator surplus up to 55% of subsidies could be achieved under Ramsey-Boiteux pricing or two-part tariffs, respectively. The second chapter presents a framework to analyze dynamic processes and long-run outcomes in two-sided markets, specifically dynamic platform and firm investment incentives within the internet-service platform/content provision market. I use the Ericson-Pakes framework applied within a platform that chooses fees on either side of its two-sided market. This chapter determines the impact of network neutrality on platform investment incentives, specifically whether to improve the platform. I use a parameterized calibration from engineering reports and current ISP literature to determine welfare outcomes and industry behavior under network neutral and non-neutral regimes. My final chapter explores retail firm failure within the deregulated Texas retail electricity market. This chapter investigates determinants of retail electric firm failures using duration analysis frameworks. In particular, this chapter investigates the impact of these determinants on firms with extant experience versus unsophisticated entrants. Understanding these determinants is an important component in evaluating whether deregulation achieves the impetus of competitive electricity market restructuring. Knowing which economic events decrease a market's competitiveness helps regulators to effectively evaluate policy implementations. I find that experience does benefit a firm's duration, but generally that benefit assists firm duration in an adverse macroeconomic environment rather than in response to adverse market conditions such as higher wholesale prices or increased transmission congestion. Additionally, I find evidence that within the Texas market entering earlier results in a longer likelihood of duration.
Household Changes in Electricity Consumption Behavior Post Solar PV-Adoption
(2014-05) Blackburn, Griselda; Rai, Varun
I combine quantitative data on minute-resolved electricity-consumption profiles and survey data with qualitative interviews of PV adopters to create a holistic understanding of how PV adoption influences behavioral change of electricity use. In particular, I examine the information and heuristics consumers use to make energy-related choices and evaluate how consumption behavior affects the total amount and timing of electricity use. Consumption behavior post adoption can significantly alter the environmental benefits of solar PV. Post-adoption changes such as decreases in energy consumption or load shifting from times of high peak demand to times of lower peak demand increase the amount of solar PV generation that is exported to the grid. Higher outflows may reduce the need for less efficient peaking generation units during peak demand, particularly in the summer when solar PV is at its highest generation capacity and electricity demand is greatest. I find that PV adoption does trigger increases in awareness of electricity use. However, while adopters report small or insignificant decreases in household consumption post-adoption, examination of actual records shows both significant increases and decreases in consumption post-PV adoption at the household level. I explain this seeming discrepancy by noting that these households were already energy-conscious prior to PV adoption and had newer, more energy efficient homes, which could offset effects of increased awareness. Supporting this, a majority of respondents considered PV adoption as one action within a larger electricity conservation campaign initiated prior to system adoption. Because they had already implemented several energy efficiency measures, respondents could not easily identify additional ways to reduce electricity use. Most respondents have a method of monitoring consumption, but their attentiveness to monitoring declines after installation-- which could explain the awareness gap as well as the consumption increase. In addition, exogenous factors such as the purchase of an electric vehicle and changes in household size may explain increases in consumption. While I find changes in total consumption after adoption of solar PV at the individual household level, the aggregate mean consumption for all households is just 1.0% but the change in means is insignificant.
To conserve or consume : behavior change in residential solar PV owners
(2011-12) McAndrews, Kristine Lee; Rai, Varun; Groat, Charles G.
A survey of residential solar photovoltaic (PV) adopters in Texas was administered and the results are presented and discussed. A 40% response rate was achieved and 365 complete responses were received. In addition to demographics, the survey uncovered aspects related to the decision-making process, information search, financial attractiveness of PV, and post-installation experience. Peer-effects did not have a large influence on the adoption of residential PV in Texas, but the potential for increasing the number of communication/information channels to increase the adoption rate of PV exists. Adopters experienced little uncertainty at the time of PV installation because sufficient dependable information was available during the search process. Overall, they are satisfied with PV. Contextual factors, such as income and the ability to purchase a PV system rather than lease one, influence behavior. Those who decreased electricity consumption post-adoption were more motivated to adopt by environmental concern and a general interest in energy than those who increased electricity consumption post-adoption. Those who experienced behavior changes also experienced an increase in awareness of electricity use post-adoption, while those who did not experience a behavior change reported no change in awareness post-adoption. Change in awareness of electricity use is less dependent on the attitudinal and contextual factors, such as environmental concern, motivation for adoption, age, and income, that influence consumption change. The potential for further analysis of the survey results is great and will likely yield additional conclusions about the consequences of the adoption of PV. Coupling the survey results with historical electricity bill data will yield stronger conclusions about behavior change. Surveying geographical areas outside of Texas is recommended.