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Explaining Demand for Green Electricity Using Data from All U.S. Utilities

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  • Conte, Marc N.
  • Jacobsen, Grant D.

Abstract

Green electricity programs enable households to voluntarily contribute to the development of renewable electricity by purchasing green electricity through their local utility. Using a dataset of all utilities in the United States, this paper explores the utility, consumer, and program characteristics that influence participation levels in green electricity, as well as whether a utility chooses to offer a program. Among other results, we find that the key determinants of program participation are the education of the consumer base and the affordability of the green electricity program. Our results enhance understanding of private provision of environmental public goods and could aid in ex ante evaluations of whether a green electricity program is likely to cover its administrative costs or be a cost-effective way of improving environmental quality.

Suggested Citation

  • Conte, Marc N. & Jacobsen, Grant D., 2016. "Explaining Demand for Green Electricity Using Data from All U.S. Utilities," Energy Economics, Elsevier, vol. 60(C), pages 122-130.
    • Handle: RePEc:eee:eneeco:v:60:y:2016:i:c:p:122-130
    DOI: 10.1016/j.eneco.2016.09.001
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    Cited by:

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    3. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    4. Cardella, Eric & Ewing, Brad & Williams, Ryan Blake, 2018. "Green is Good – The Impact of Information Nudges on the Adoption of Voluntary Green Power Plans," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266583, Southern Agricultural Economics Association.
    5. Bae, Jeong Hwan & Rishi, Meenakshi, 2018. "Increasing consumer participation rates for green pricing programs: A choice experiment for South Korea," Energy Economics, Elsevier, vol. 74(C), pages 490-502.
    6. Fikru, Mahelet G. & Gautier, Luis, 2023. "Consumption and production of cleaner energy by prosumers," Energy Economics, Elsevier, vol. 124(C).
    7. Fikru, Mahelet G. & Azure, Jessica W.A., 2023. "Renewable energy technologies and carbon capture retrofits are strategic complements," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    8. Sturm, Bodo & Pei, Jiansuo & Wang, Ran & Löschel, Andreas & Zhao, Zhongxiu, 2019. "Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    9. Zhou, Shan & Solomon, Barry D., 2021. "The interplay between renewable portfolio standards and voluntary green power markets in the United States," Renewable Energy, Elsevier, vol. 178(C), pages 720-729.
    10. Motz, Alessandra, 2021. "Consumer acceptance of the energy transition in Switzerland: The role of attitudes explained through a hybrid discrete choice model," Energy Policy, Elsevier, vol. 151(C).

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    More about this item

    Keywords

    Green demand; Green electricity programs; Private provision of environmental public goods; Renewable energy;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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