Household response to incentive payments for load shifting: A Japanese time-of-day electricity pricing experiment

We measure the effect of incentive payments on residential time-of-day (TOD ) electricity demand in summer, using data from a residential TOD electrici ty pricing experiment in the Kyushu region of southern Japan. During the ex periment, participating households could receive incentive payments if they reduce their peak usage share. Results based on an econometric model indic ate that households have shifted their electricity usage from peak to off-p eak periods in response to the incentive payment, but the effect of the inc entive payment on load shifting was modest.