Critical Peak Rewards: Evidence from a Nationwide Demand Response Program
NBER Working Paper No. 35485
A natural field experiment with 2.7 million participants in the world's first nationwide demand flexibility programme, examining how financial incentives shaped participation in 16 winter peak-reduction events. Compliers cut demand by 23.1% during events, at a system cost of roughly £2,325 per MWh; adoption of solar, batteries, heat pumps, and EVs was associated with greater demand response capability.