A model of industrial demand for electricity under time-of-use pricing and three labor shifts

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Abstract

In this paper we have developed and estimated the demand for electricity by an industrial (commercial) firm subject to time-of-use (TOU) pricing of electric power. In particular, we use a quadratic production function and directly incorporate into the production process the restriction that labor inputs can vary only among different labor shifts over the day. We show that the TOU structure implies a unique set of parameter restrictions across the demand functions for inputs. The model is applied to three firms in the Los Angeles area.

Original languageEnglish
Pages (from-to)107-127
Number of pages21
JournalResources and Energy
Volume6
Issue number2
DOIs
StatePublished - Jun 1984

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