Renewable Energy Rebound Effect?: Estimating the Impact of State Renewable Energy Financial Incentives on Residential Electricity Consumption
Stephenson, Beth A.
Climate change is a well-documented phenomenon. If left unchecked greenhouse gas emissions will continue global surface warming, likely leading to severe and irreversible impacts. Generating renewable energy has become an increasingly salient topic in energy policy as it may mitigate the impact of climate change. State renewable energy financial incentives have been in place since the mid-1970s in some states and over 40 states have adopted one or more incentives at some point since then. Using multivariate linear and fixed effects regression for the years 2002 through 2012, I estimate the relationship between state renewable energy financial incentives and residential electricity consumption, along with the associated policy implications. My hypothesis is that a renewable energy rebound effect is present; therefore, states with renewable energy financial incentives have a higher rate of residential electricity consumption. I find a renewable energy rebound effect is present in varying degrees for each model, but the results do not definitively indicate how particular incentives influence consumer behavior. States should use caution when adopting and keeping renewable energy financial incentives as this may increase consumption in the short-term. The long-term impact is unclear, making it worthwhile for policymakers to continue studying the potential for renewable energy financial incentives to alter consumer behavior.
Showing items related by title, author, creator and subject.
Efficiency, Renewables, and the Effect of Energy Policy Interactions on Residential Electricity Consumption in the United States Johnson, Robert A. (Georgetown University, 2012)This paper examines whether the combination of different energy policies yields interaction effects that influence the impact had by any single policy on its outcome of interest. In particular, this study examines whether ...
The Effect of Economic Factors and Energy Efficiency Programs on Residential Electricity Consumption Sakai, Mihoko (Georgetown University, 2013)Many countries have implemented policies to correct market and behavioral failures that lead to inefficient energy use. It is important to know what factors and policies can effectively overcome such failures and improve ...
Building Up Energy Efficiency: An Analysis of the Relationship Between Energy Efficiency Building Codes and Electricity Consumption in the U.S. Residential Sector Murray, Susan (Georgetown University, 2014)The effects of climate change caused by the release of greenhouse gases (GHG) are a growing concern for state governments in the United States. The majority of state governments have attempted to mitigate GHG emissions ...