RESIDENTIAL ENERGY DEMAND AND THE INTERACTION OF PRICE AND TEMPERATURE - BRITISH EXPERIMENTAL-EVIDENCE

The responsiveness of heating energy demand to pricing is shown to be dependent on temperature and vice versa. This is investigated empirica lly using residential electricity demand data obtained under condition s of price variation from a British time-of-use pricing experiment. Re sults confirm that consumer responses to higher electricity prices are conditional on temperature levels, particularly during the daytime an d for households with high overall levels of electricity consumption a nd previous experience of time-of-use tariffs. (C) 1998 Elsevier Scien ce B.V.