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The Perverse Impact of Calling for Energy Conservation

Author

Listed:
  • J. Scott Holladay

    (Department of Economics, University of Tennessee)

  • Michael Price

    (Department of Economics, Georgia State University)

  • Marianne Wanamaker

    (Department of Economics, University of Tennessee)

Abstract
In periods of high energy demand, utilities frequently issue "emergency" appeals for conservation over peak hours to reduce brownout risk. We estimate the impact of such appeals using high-frequency data on actual and forecasted electricity generation, pollutant emission measures, and real-time prices. Our results suggest a perverse impact; while there is no significant reduction in grid stress over superpeak hours, such calls lead to increased off-peak generation, CO2 emissions, and price volatility. We postulate that consumer attempts at load shifting lead to this result.

Suggested Citation

  • J. Scott Holladay & Michael Price & Marianne Wanamaker, 2014. "The Perverse Impact of Calling for Energy Conservation," Working Papers 2014-01, University of Tennessee, Department of Economics.
    • Handle: RePEc:ten:wpaper:2014-01
    as

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    File URL: http://web.utk.edu/~jhollad3/Perverse_Impact.pdf
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    Cited by:

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    More about this item

    Keywords

    Energy Demand; Air Pollution; Conservation; Media;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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