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An Economic Welfare Analysis of Demand Response in the PJM Electricity Market
Sources:
Carnegie Mellon University Electricity Industry Center
Energy Policy Journal
The Pennsylvania State University
Customized Energy Solutions Consulting
Authors:
Date:
1 October 2008
This report analyses the economic properties of the demand response program in the PJM wholesale electricity market of the eastern United States. The authors estimate a subsidy range in which the social welfare gains outweigh the distortions of the subsidy.