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Assignment 2 (Literature Review)

Research Topic:

Research Questions: India’s Peak Power Demand (177GW for 2018-19[1]) accounts for 8 out of 96 time blocks
(90-120mins) which is merely 3% of the overall electrical energy demand. To meet this ramping demand an
additional capacity utility installation is required i.e. 16% above Average Power Demand.
Additional Capacity 24,500 MW Installation cost: 5 Crore/MW
This capital investment can be saved directly by implementing the dynamic pricing option called Time of Day
(ToD) Tariff. Which can effectively change the Consumer demand pattern.

Research Questions:

1. How the consumer behaviour will change on ToD implementation?

2. Are consumers willing to switch to smart time of use electricity tariffs?
3. What is the threshold of dynamic pricing after which consumer is engaged with ToD ?
(and becomes elastic to price).
4. What should be the optimum slot length to enhance consumer participation?

Literature Review Process

 We did an abstract search in the EBSCO host database with a filter of Scholarly (Peer Reviewed) Journals, using
the keywords “Dynamic Electricity Pricing” and “Consumer Response”. This search resulted in only one article.
We expanded search from abstract to open filed which results in two articles.
 Again I tried abstract search with keywords “Electricity Tariff” and “Consumer Response” this too results in only
1 article (both in abstract and open filed search).
 We modified my abstract search with keywords “Electricity Pricing” and “Consumer Response”, and got 6 articles
in abstract search and 13 articles open search.
 We modified search with key words “Dynamic Pricing”, “Electricity” and “Consumer Response”, and got 2 articles
in abstract search and 4 articles in open search.
 We expend my search with keywords “Time varying prices”, “Electricity” and “Consumer Response” a I got 13
article. in abstract search and 21 articles (search page displays 30results but it gives only 21 articles) in open
search.

We manually screened the abstracts of all these articles based on their relevance to my research questions to shortlist
15 articles for further review.
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SN Key words Search Type (Filter) No. of Articles

1 “Dynamic Electricity Pricing”, Abstract Search, Peer Reviewed 1
1a “Consumer Response” Open Search, Peer Reviewed 2
2 “Electricity Tariff”, “Consumer Abstract Search, Peer Reviewed 1
2a Response” Open Search, Peer Reviewed 1
3 “Electricity Pricing”, “Consumer Abstract Search, Peer Reviewed 6
3a Response Open Search, Peer Reviewed 13
4 “Dynamic Pricing”, “Electricity” and Abstract Search, Peer Reviewed 2
4a “Consumer Response”, Open Search, Peer Reviewed 4
5 “Time varying prices”, “Electricity” Abstract Search, Peer Reviewed 13
5a and “Consumer ” Open Search, Peer Reviewed 21 (shows 30)
5 Filtered Articles 13

These 12 articles were Knotts, Jones and Udell (2003), Urban and Naidoo (2012), Atamina and VanZante (2010), Rolleri, Nadan,
and Lussier (2016), Yallaprogada and Bhuihan (2010), Perry (2001), Purves, Niblock, and Sloan (2009), Franco and Hasse (2009),
Beaver and Graham (2005), Rasheed (2005), Bornstein (2007), and Gerhardt, Hazen, Lewis (2014).

Synthesis: Create tables summarizing what prior literature tells us about your problem area, similar to the tables
in Eppler & Mengis’s (2004) information overload paper. Notice how Table 2 presents definitions, Table 3 lists
causes (of information overload), Table 4 describes symptoms or effects, and Table 5 shows countermeasures.
In each case, they list the issues in the central column, groups them in the left column, and presents references in
the right column. I’m expecting similar tables (perhaps smaller, given your 10-15 paper limit).

TABLE 1: Key Concepts

Concepts Description References

Small Business  Fewer than 500 employees Knotts, Jones, Udell, 2003

Contribution to economy
 Contribute to growth & stability of US economy: 50% Knotts, Jones, Udell,2003
of all sales, employ ½ US workforce, 55% of
innovations Rolleri, Nadim, Lussier, 2016
 99% of registered firms are SB
 39% US GNP; 2 of 3 new jobs Yallapragada, Bhuiyan, 2011
 27million SB = 99.7% employer business Yallapragada, Bhuiyan, 2011

 90% SBF are management related Knotts, Jones, Udell, 2003

Failure
 Each year, 1/2million SB start-up and close Rolleri, Nadim, Lussier,
 34% SB do not survive 2 years 2016
 20% of new ventures fail w/in 1 year and 66% w/in 6 Yallapragada, Bhuiyan, 2011
years Franco, Hasse, 2009 (Port)

TABLE 2: Factors that Encourages Dynamic Pricing
General Factors
Overall Energy Saving
Overall Cost Saving
Information Asymmetry
Sales
Product
Internal (Environ) Factors
Operational Skills
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Specific Cause Reference
 15%-20% decrease in Peak shaving
 No change in utility consumption & decrease in overall
price
 Reducing in Generation , Transmission & Distribution
price


 About the cost intensiveness of Peak Energy Demand


 limited resources. SB does not predict -the react
 Lack of mgmt. & internal controls
 Reliability & accuracy of accounting info
 Garbage in/garbage out
 Need written planning documents
 Lack of recordkeeping and therefore inability to access
info for decision making
 No ability to recognize a position of crisis (metrics)
 Lack of monthly sales/revenues
 Do not have sales budget/plan
 Inferior Product characteristics
 Products not sufficiently prepared
 Internal vs External Factors are the cause
 Positively assoc w sustainability
 Most significant area of training required
 Failed companies show non-existence of terms
 Inertia of the decision-making process can lead to missed
opportunities
 There are discrepancies to identifying factors that lead to
SBF
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Category
Knowledge/Understanding
Financial Literacy Training
Predicting Failure
Resources spending on SB
Strategic Partners
Plan for Success
Enhanced Skills
TABLE 3: Factors
Intervention Reference
 Practical Accounting & Analytical Tools Bornstein, 2007
 Financial Stmt Analysis/Ratios (blood test) Bornstein, 2007
 Enhance existing training programs Bornstein, 2007
 Banks are starting programs to assist SB Bornstein, 2007
 Useful info to predict SBF Bornstein, 2007
 Financial stmt analysis can detect SBF trends within Bornstein, 2007
critical first 5 years
 Be proactive in evaluating health of SB-mgmt audits, Rolleri, Nadim, Lussier, 2016
gap analysis, check-ups
Rolleri, Nadim, Lussier, 2016
 Vast amounts are spent on SB – useful?
 Need to measure before & after to know of effect of
Rolleri, Nadim, Lussier, 2016
spending on viability of SB
Rolleri, Nadim, Lussier, 2016
 Need to find ways to insure viability Atamian, VanZante, 2010
 Member of CoC, webinars, compliance, CPA, Rolleri, Nadim, Lussier, 2016
Lawyers, Coaching Purves, Niblock, 2016
 Multiplicity of skills seldom found in one individual Atamian, VanZante, 2010
 SB owner’s product should be the business itself – not
what they produce (line vs support activities) Atamian, VanZante, 2010
 Support Activities yield decision making Atamian, VanZante, 2010
 Ounce of prevention = pound of cure Atamian, VanZante, 2010
 Financing, Human Resources, Ops, Marketing/Sales,
Customer Service, Info Mgmt, Admin Yallapragada, Bhuiam, 2011

Analysis (Gaps): What patterns do you see in your literature review? What gaps or opportunities do you see
(i.e., what is MISSING from your literature review)? Note that gaps may NOT be explicitly mentioned in the
literature; you may use your intuition and experience to identify what is not there. Based on this analysis, do
your RQs still seem appropriate? If not, modify the RQs accordingly.

While there is some research on small business failure, there is practically no research on microbusiness failure.
Microbusinesses are a unique subset of small businesses with less than 5 employees (some research indicate 9
employees or less), while small businesses may have up to 500 employees. Microbusinesses are often family owned
businesses where employees are typically family members, often working without compensation.

The literature review reveals that small businesses have a high failure rate. There seem to some general underlying
causes for these failures, as listed in Table 2, though there is also little discussion on which of these factors are the
most important. While lack of access to capital is often presumed to be the primary cause of small-business failure,
the literature suggests that several non-monetary factors also contribute to small business failure. Most of these
non-monetary factors are in the area of management skills and acumen. Most small businesses are also unaware of
resources available to them that can help their business succeed and grow. Proper utilization of available resources
and addressing non-monetary factors may help mitigate many small business failures.

I found only five articles that addressed potential interventions to minimize small business failure. Most of these
interventions targeted managerial skills development and building networks of relationships. Given the importance
of interventions and the dearth of research in this area, identifying and testing potential interventions seem like a
particularly promising area of work.

Based on the literature review, I find that microbusiness failure is an important yet unaddressed area of research.
Following a review of the small business literature, some of the factors that drive small business failure may also
apply to microbusinesses, while microbusiness may also have unique factors of their own worth investigation that
are not reflected in the small business literature. My research will attempt to (1) extend our understanding of small
business failures to understand microbusiness failures, and (2) uncover microbusiness-specific factors that lead to
microbusiness failure, and (3) identify intervention mechanisms that can minimize microbusiness failure.
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1. A literature review on dynamic pricing of electricity

2. Household responsiveness to residential demand response strategies: Results and policy implications from
a Swedish field study
3. Peak-off-peak load shifting: Are public willing to accept the peak and off-peak time of use electricity price?
4. MEASURING THE CONSUMER WELFARE EFFECTS OF TIME-DIFFERENTIATED ELECTRICITY PRICES
5. A Model for Efficient Consumer Pricing Schemes in Electricity Markets
6. Residential response to voluntary time-of-use electricity rates.
7. Residential energy demand and the interaction of price and temperature: British experimental...
8. A Faithful and Tractable Distributed Mechanism for Residential Electricity Pricing
9. Nudging Electricity Consumption Using TOU Pricing and Feedback: Evidence from Irish Households
10. An economic assessment of distributed solar PV generation in Sweden from a consumer perspective – The
impact of demand response
11. Real-time electricity pricing of a comprehensive demand response model in smart grids.
12. Consumer responses to time varying prices for electricity
13. Creating a Smarter U.S. Electricity Grid

1. A literature review on dynamic pricing of electricity.

1a. A literature review on dynamic pricing of electricity.

1a. Household responsiveness to residential demand response strategies: Results and policy implications from a
Swedish field study

2. Peak-off-peak load shifting: Are public willing to accept the peak and off-peak time of use electricity price?
2a. Peak-off-peak load shifting: Are public willing to accept the peak and off-peak time of use electricity price?

3. A literature review on dynamic pricing of electricity.

3. Creating a Smarter U.S. Electricity Grid
3. MEASURING THE CONSUMER WELFARE EFFECTS OF TIME-DIFFERENTIATED ELECTRICITY PRICES.
3. A Model for Efficient Consumer Pricing Schemes in Electricity Markets
3. Residential response to voluntary time-of-use electricity rates.
3. Residential energy demand and the interaction of price and temperature: British experimental...

3a. A literature review on dynamic pricing of electricity.

3a. A Faithful and Tractable Distributed Mechanism for Residential Electricity Pricing.
3a. Nudging Electricity Consumption Using TOU Pricing and Feedback: Evidence from Irish Households
3a. An economic assessment of distributed solar PV generation in Sweden from a consumer perspective – The
impact of demand response.
3a. Real-time electricity pricing of a comprehensive demand response model in smart grids.
3a. Consumer responses to time varying prices for electricity
3a. Household responsiveness to residential demand response strategies: Results and policy implications from a
Swedish field study
3a. A Model for Efficient Consumer Pricing Schemes in Electricity Markets
3a. Creating a Smarter U.S. Electricity Grid
3a. MEASURING THE CONSUMER WELFARE EFFECTS OF TIME-DIFFERENTIATED ELECTRICITY PRICES.
3a. Residential response to voluntary time-of-use electricity rates.
3a. Residential energy demand and the interaction of price and temperature: British experimental...
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4. A literature review on dynamic pricing of electricity.

4. A Faithful and Tractable Distributed Mechanism for Residential Electricity Pricing

4a. A literature review on dynamic pricing of electricity.

4a. Household responsiveness to residential demand response strategies: Results and policy implications from a
Swedish field study
4a. A Faithful and Tractable Distributed Mechanism for Residential Electricity Pricing
4a. Understanding undergraduate students' perceptions of dynamic pricing policies: An exploratory study of two
pilot deliberative pollings (DPs) in Guangzhou, China and Kyoto, Japan.

DOI’s
1. doi.org/10.1057/s41274-016-0149-4
2. doi.org/10.1016/j.enpol.2018.07.044
3. doi.org/10.1016/j.jclepro.2018.06.181
4. doi.org/10.1016/0304-4076(84)90012-5
5. doi.org/10.1109/TPWRS.2006.888956
6. doi.org/10.1016/S0928-7655(97)00025-0
7. doi.org/10.1016/S0140-9883(97)00025-X
8. doi.org/10.1109/TPWRS.2017.2771945
9. doi.org/10.1016/j.joep.2017.03.005
10. doi.org/10.1016/j.renene.2017.02.050
11. doi.org/10.1002/etep.2256
12. doi.org/10.1016/j.enpol.2012.06.062

1. Goutam Dutta* and Krishnendranath Mitra

2. Anders Nilssona,⁎David Lazarevica, Nils Brandta, Olga Kordasa
3. Yingkui Yang, Mingyue Wang, Yu Liu*, Li Zhang
4. Richard W. PARKS, David WEITZEL
5. Emre Çelebi and J. David Fuller
6. S. Mostafa Baladi, Joseph A. Herriges, Thomas J. Sweeney
7. Andrew Henley, John Peirson
8. Sleiman Mhanna, Archie C. Chapman, Gregor Verbiˇ
9. Valeria Di Cosmo, Denis O’Hora
10. Emil Nyholm*, Mikael Odenberger, Filip Johnsson
11. Abouzar Samimi, Mehdi Nikzad, Mohammad Mohammadi
12. Paul Thorsnes, JohnWilliams, RobLawson