Aggregate industrial energy consumer response to wholesale prices in the restructured Texas electricity market

A-Tier
Journal: Energy Economics
Year: 2008
Volume: 30
Issue: 4
Pages: 1798-1808

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The aggregate response of consumers to wholesale price signals is very limited in the restructured Electric Reliability Council of Texas (ERCOT) market. An overall average own-price elasticity of demand of - 0.000008 for industrial energy consumers served at transmission voltage is estimated using a Symmetric Generalized McFadden cost function model. To date, ERCOT has sought to promote demand response to price signals without reliance on "stand alone" demand response programs, but with a market structure that is designed to facilitate economic demand response. This very limited responsiveness to wholesale price signals may prove problematic in light of policy decisions to pursue an "energy only" resource adequacy mechanism for ERCOT.

Technical Details

RePEc Handle
repec:eee:eneeco:v:30:y:2008:i:4:p:1798-1808
Journal Field
Energy
Author Count
2
Added to Database
2026-01-29