Electricity demand management through pricing: scope and options
by P.V. Srinivasan, B. Sudhakara Reddy
International Journal of Global Energy Issues (IJGEI), Vol. 8, No. 5/6, 1996

Abstract: In this paper we estimate the price elasticities of demand for electricity in the domestic and industrial sectors in India, and assess the potential role of pricing in managing demand. We discuss several possible pricing options that can bring about more efficient use of limited generating capacity, as well as addressing the issue of equity. From our estimations we find demand to be reasonably sensitive to price changes among both residential and industrial consumers. We also notice that India can choose from a wide spectrum of pricing mechanisms that can lead to efficient use of resources and reduce the losses incurred by its state electricity boards.

Online publication date: Mon, 14-Jul-2014

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