Effects of Load Adjustment Contracts on Industrial Electricity Use in Japan

Author Name ISOGAWA Daiya  (University of Tokyo) /OHASHI Hiroshi  (Faculty Fellow, RIETI)
Creation Date/NO. September 2015 15-J-053
Research Project Basic Research for a New Industrial Policy
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This paper estimates the effect of load adjustment contracts offered by electric utilities in Japan on the industrial demand for electricity usage. Using unique data on the electricity usage of individual industrial users, we find that the contracts effectively decrease both electricity consumption and peak demand of the industrial users, but that the magnitude of which differs according to plant size and labor productivity.