The effects of critical peak pricing for electricity demand management on home-based trip generation

• The impact of critical peak pricing (CPP) is analyzed.
• CPP is estimated to conserve electricity use and induce trip generation.
• CPP is shown to have negative effects on aged people due to limitations in mobility.
• An integrated analysis of electricity and transportation is suggested.

This paper examines electricity critical peak pricing (CPP) as a measure for controlling electricity demand at critical peak times. This pricing scheme is designed to facilitate energy conservation not only inside but also outside the home. For this study, we surveyed consumer propensity to leave the home under CPP schemes and analyzed the impact of CPP on consumer cost. The results indicated that higher prices induce a higher rate of going out, while residential conditions such as population density and access to public transportation have a relatively small impact on leaving the home and average energy conservation. However, this is not always the case for aged households with limited mobility; residential conditions have a substantial effect on this segment of the population. Combined with a reduced ability to go out, electricity pricing has a greater negative impact on aged people. These results imply that improving accessibility through transportation development and urban compaction is an effective means of saving electricity alleviating the negative impact of CPP on the aged society of the future.