TIME-OF-USE PRICING STUDY ON UBAN GAS IN CONSIDERATION OF CROSS-PRICE ELASTICITY
In recent years,shortage of gas frequently happens nationwide.To mitigate the pressure of gas use,effective pricing is the key besides a stable imported source.As gas demands are surging and consumers are increasing,it requires pipeline pressure to be increased for a stable running,which demands a right gas pricing means that can minimize peak-valley load difference and maintain a stable market.This paper establishes a demand-response model based on self-elasticity and cross-price elasticity for industrial users in consideration of dual impacts of gas price's self-elasticity and cross elasticity during different periods.A pricing simulation model is thus built to study Beijing's gas end consumption market.Results of time-of-use pricing are positively related to increased price proportion(peak-valley price difference),negatively to users'gas consumption proportion to total consumption,the higher users'consumption,the worse results.Gas price's self-elasticity and cross-price elasticity play a key role time-of-use pricing policy,which can not reach a multiple-win among gas providers and industrial users without considering governmental allowances on gas providers and industrial users,only beneficial to either.Under specific conditions,time-of-use pricing is an effective way in decreasing-peak-use-increasing-valley-use to guarantee a stable pipeline running.Above-factors have to be considered to better simulate the marketing when studying time-of-use pricing policy.
dynamic pricing theorygas time-of-use pricingdemand-responseurban gas pipelinecross-price elasticity