PREPAID ELECTRICITY PLAN AND ELECTRICITY CONSUMPTION BEHAVIOR

Yueming Qiu; Bo Xing; Yi David Wang

doi:10.1111/coep.12170

PREPAID ELECTRICITY PLAN AND ELECTRICITY CONSUMPTION BEHAVIOR

Yueming Qiu, Bo Xing, Yi David Wang

Sustainability Initiative

Research output: Contribution to journal › Article › peer-review

14 Scopus citations

Abstract

By using customer-level residential billing data from 2008 to 2010 of a major utility company in Phoenix metropolitan area, this study adopts a matching approach and a difference-in-differences method to estimate empirically the impact of a prepaid electricity plan on residential electricity consumption, after correcting for selection bias. Results show that the prepaid program is associated with a 12% reduction in electricity usage, customers with lower level of wealth or those with higher amount of arrearage prior to switching to the prepaid program tend to save more electricity after switching, and prepaid customers save more electricity in the summer than winter. (JEL L94, Q41).

Original language	English (US)
Pages (from-to)	125-142
Number of pages	18
Journal	Contemporary Economic Policy
Volume	35
Issue number	1
DOIs	https://doi.org/10.1111/coep.12170
State	Published - Jan 1 2017

ASJC Scopus subject areas

Business, Management and Accounting(all)
Economics and Econometrics
Public Administration

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10.1111/coep.12170

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abstract = "By using customer-level residential billing data from 2008 to 2010 of a major utility company in Phoenix metropolitan area, this study adopts a matching approach and a difference-in-differences method to estimate empirically the impact of a prepaid electricity plan on residential electricity consumption, after correcting for selection bias. Results show that the prepaid program is associated with a 12% reduction in electricity usage, customers with lower level of wealth or those with higher amount of arrearage prior to switching to the prepaid program tend to save more electricity after switching, and prepaid customers save more electricity in the summer than winter. (JEL L94, Q41).",

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N2 - By using customer-level residential billing data from 2008 to 2010 of a major utility company in Phoenix metropolitan area, this study adopts a matching approach and a difference-in-differences method to estimate empirically the impact of a prepaid electricity plan on residential electricity consumption, after correcting for selection bias. Results show that the prepaid program is associated with a 12% reduction in electricity usage, customers with lower level of wealth or those with higher amount of arrearage prior to switching to the prepaid program tend to save more electricity after switching, and prepaid customers save more electricity in the summer than winter. (JEL L94, Q41).

AB - By using customer-level residential billing data from 2008 to 2010 of a major utility company in Phoenix metropolitan area, this study adopts a matching approach and a difference-in-differences method to estimate empirically the impact of a prepaid electricity plan on residential electricity consumption, after correcting for selection bias. Results show that the prepaid program is associated with a 12% reduction in electricity usage, customers with lower level of wealth or those with higher amount of arrearage prior to switching to the prepaid program tend to save more electricity after switching, and prepaid customers save more electricity in the summer than winter. (JEL L94, Q41).

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PREPAID ELECTRICITY PLAN AND ELECTRICITY CONSUMPTION BEHAVIOR

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