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Residential and Regional Electricity Consumption in the U.S. and EU: How Much Will Higher Prices Reduce CO2 Emissions?

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  • Azevedo, Inês M. Lima
  • Morgan, M. Granger
  • Lave, Lester

Abstract

Results of our analysis suggest that, given the price-inelastic behavior in both the U.S. and EU regions, public policies aimed at fostering a transition to a more sustainable energy system in order to address the climate change challenge will require more than an increase in electricity retail price if they are to induce needed conservation efforts and the adoption of more efficient technologies by households.

Suggested Citation

  • Azevedo, Inês M. Lima & Morgan, M. Granger & Lave, Lester, 0. "Residential and Regional Electricity Consumption in the U.S. and EU: How Much Will Higher Prices Reduce CO2 Emissions?," The Electricity Journal, Elsevier, vol. 24(1), pages 21-29, January.
    • Handle: RePEc:eee:jelect:v:24:y::i:1:p:21-29
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    Citations

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    Cited by:

    1. Blázquez Gomez, Leticia M. & Filippini, Massimo & Heimsch, Fabian, 2013. "Regional impact of changes in disposable income on Spanish electricity demand: A spatial econometric analysis," Energy Economics, Elsevier, vol. 40(S1), pages 58-66.
    2. Fan, Jin & Li, Jun & Wu, Yanrui & Wang, Shanyong & Zhao, Dingtao, 2016. "The effects of allowance price on energy demand under a personal carbon trading scheme," Applied Energy, Elsevier, vol. 170(C), pages 242-249.
    3. Michael Nippa & Sanjay Patnaik & Markus Taussig, 2021. "MNE responses to carbon pricing regulations: Theory and evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 904-929, July.
    4. Claudio Agostini & Cecilia Plottier & Eduardo Saavedra, 2009. "La Demanda Residencial por Energía Eléctrica en Chile," ILADES-UAH Working Papers inv240, Universidad Alberto Hurtado/School of Economics and Business.
    5. Gautam, Tej K. & Paudel, Krishna P., 2018. "Estimating sectoral demands for electricity using the pooled mean group method," Applied Energy, Elsevier, vol. 231(C), pages 54-67.
    6. Harish, Santosh M. & Morgan, Granger M. & Subrahmanian, Eswaran, 2014. "When does unreliable grid supply become unacceptable policy? Costs of power supply and outages in rural India," Energy Policy, Elsevier, vol. 68(C), pages 158-169.
    7. Heshmati, Almas, 2012. "Survey of Models on Demand, Customer Base-Line and Demand Response and Their Relationships in the Power Market," IZA Discussion Papers 6637, Institute of Labor Economics (IZA).
    8. Yihsu Chen & Lizhi Wang, 2013. "Renewable Portfolio Standards in the Presence of Green Consumers and Emissions Trading," Networks and Spatial Economics, Springer, vol. 13(2), pages 149-181, June.
    9. Liddle, Brantley & Huntington, Hillard, 2021. "How prices, income, and weather shape household electricity demand in high-income and middle-income countries," Energy Economics, Elsevier, vol. 95(C).
    10. Mori, Keibun, 2012. "Modeling the impact of a carbon tax: A trial analysis for Washington State," Energy Policy, Elsevier, vol. 48(C), pages 627-639.
    11. Weber, Elke U. & Johnson, Eric J., 2012. "Psychology and behavioral economics lessons for the design of a green growth strategy," Policy Research Working Paper Series 6240, The World Bank.
    12. Tomasz Rokicki & Piotr Bórawski & Barbara Gradziuk & Piotr Gradziuk & Aldona Mrówczyńska-Kamińska & Joanna Kozak & Danuta Jolanta Guzal-Dec & Kamil Wojtczuk, 2021. "Differentiation and Changes of Household Electricity Prices in EU Countries," Energies, MDPI, vol. 14(21), pages 1-21, October.
    13. Tanachai Limpaitoon & Yihsu Chen & Shmuel Oren, 2011. "The impact of carbon cap and trade regulation on congested electricity market equilibrium," Journal of Regulatory Economics, Springer, vol. 40(3), pages 237-260, December.

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