【Empirical Seminar】Estimating the Effect of Winning Demand Response Auctions on Firms' Electricity Consumption

  • 研討會日期 : 2022-12-20
  • 時間 : 14:30
  • 主講人 : Professor Chia-Wen Chen (陳嘉雯)
  • 地點 : Conference room B110
  • 主持人 : Professor Tzu-Ting Yang
  • 演講者簡介 : Professor Chia-Wen Chen (陳嘉雯) received her Ph.D. in Economics from the University of California, Davis 2011. She is currently an Associate Research Fellow at the Research Center for Humanities and Social Sciences, Academia Sinica. Her research interests are Industrial Organization, Regulation and Antitrust and Applied Econometrics.
  • 演講摘要 : A demand response auction is a rebate program that rewards winners (participants with bids lower than the market clearing price) for their ensuing electricity-saving behavior. Using data on bids, auction outcomes, and hourly electricity consumption at the firm level from Taiwan's basic metal industry, this paper examines how firms' electricity consumption reacts to such auctions. We construct tests for the free-rider and the baseline effect of the program. When firms lose auctions and receive no payment from electricity conservation, we find that the lower the firms' bids are, the lower their electricity consumption is, implying a free-rider effect. We show that failing to account for potential selection effects leads the program to overestimate its electricity savings by at least 47%.