IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v20y2012i1p17-21.html
   My bibliography  Save this article

Determinants of voluntary electricity demand management program participation

Author

Listed:
  • Leonard, J. Mark
  • Decker, Christopher S.

Abstract

This paper examines the voluntary electricity demand management decisions of commercial and industrial customers (at the firm and facility level) of an electric utility serving a United States Midwestern metropolitan area. Using standard probit analysis, we find that electricity costs are a major determinant of a firm’s decision to voluntarily engage in demand management programs. Specifically, an additional $100,000 in electricity costs raises the probability of participation in an electricity demand management program by 0.3 percent. We also find that companies with multiple sites are 3.7 percent more likely to participate. In terms of demand management program participation, these results indicate a difference between organization and size that warrants further examination.

Suggested Citation

  • Leonard, J. Mark & Decker, Christopher S., 2012. "Determinants of voluntary electricity demand management program participation," Utilities Policy, Elsevier, vol. 20(1), pages 17-21.
    • Handle: RePEc:eee:juipol:v:20:y:2012:i:1:p:17-21
    DOI: 10.1016/j.jup.2011.10.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178711000610
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2011.10.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004. "Incentives for environmental self-regulation and implications for environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 632-654, July.
    2. Laura Hartman & Robert Rubin & K. Dhanda, 2007. "The Communication of Corporate Social Responsibility: United States and European Union Multinational Corporations," Journal of Business Ethics, Springer, vol. 74(4), pages 373-389, September.
    3. Alan Collins & Richard I. D. Harris, 2002. "Does Plant Ownership Affect the Level of Pollution Abatement Expenditure?," Land Economics, University of Wisconsin Press, vol. 78(2), pages 171-189.
    4. Prakash,Aseem & Potoski,Matthew, 2006. "The Voluntary Environmentalists," Cambridge Books, Cambridge University Press, number 9780521677721, September.
    5. Prakash,Aseem & Potoski,Matthew, 2006. "The Voluntary Environmentalists," Cambridge Books, Cambridge University Press, number 9780521860413, September.
    6. J Videras & A Alberini, 2000. "The appeal of voluntary environmental programs: which firms participate and why?," Contemporary Economic Policy, Western Economic Association International, vol. 18(4), pages 449-460, October.
    7. Madhu Khanna & William Rose Q. Anton, 2002. "Corporate Environmental Management: Regulatory and Market-Based Incentives," Land Economics, University of Wisconsin Press, vol. 78(4), pages 539-558.
    8. Khanna, Madhu & Damon, Lisa A., 1999. "EPA's Voluntary 33/50 Program: Impact on Toxic Releases and Economic Performance of Firms," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 1-25, January.
    9. Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
    10. Michael Peters & Kerry Turner, 2004. "SME environmental attitudes and participation in local-scale voluntary initiatives: some practical applications," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 47(3), pages 449-473.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carrión-Flores, Carmen E. & Innes, Robert & Sam, Abdoul G., 2013. "Do voluntary pollution reduction programs (VPRs) spur or deter environmental innovation? Evidence from 33/50," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 444-459.
    2. Torriti, Jacopo, 2013. "The significance of occupancy steadiness in residential consumer response to Time-of-Use pricing: Evidence from a stochastic adjustment model," Utilities Policy, Elsevier, vol. 27(C), pages 49-56.
    3. Yuan Liu & Qinliang Tan & Jian Han & Mingxin Guo, 2021. "Energy–Water–CO 2 Synergetic Optimization Based on a Mixed-Integer Linear Resource Planning Model Concerning the Demand Side Management in Beijing’s Power Structure Transformation," Energies, MDPI, vol. 14(11), pages 1-17, June.
    4. Earnhart, Dietrich & Mark Leonard, J., 2016. "Environmental audits and signaling: The role of firm organizational structure," Resource and Energy Economics, Elsevier, vol. 44(C), pages 1-22.
    5. Bjoern Felten & Jessica Raasch & Christoph Weber, 2017. "Photovoltaics and Heat Pumps - Limitations of Local Pricing Mechanisms," EWL Working Papers 1702, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Feb 2017.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kube, Roland & von Graevenitz, Kathrine & Löschel, Andreas & Massier, Philipp, 2019. "Do voluntary environmental programs reduce emissions? EMAS in the German manufacturing sector," Energy Economics, Elsevier, vol. 84(S1).
    2. Roeland Bracke & Tom Verbeke, 2007. "What Distinguishes EMAS Participants? An Exploration of Company Characteristics," Working Papers 2007.37, Fondazione Eni Enrico Mattei.
    3. Bracke, Roeland & Verbeke, Tom & Dejonckheere, Veerle, 2007. "What Distinguishes EMAS Participants? An Exploration of Company Characteristics," Corporate Social Responsibility and Sustainable Management Working Papers 9332, Fondazione Eni Enrico Mattei (FEEM).
    4. Ziegler, Andreas & Seijas Nogareda, Jazmin, 2009. "Environmental management systems and technological environmental innovations: Exploring the causal relationship," Research Policy, Elsevier, vol. 38(5), pages 885-893, June.
    5. Yu Matsuno, 2007. "Pollution control agreements in Japan: conditions for their success," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 103-141, June.
    6. Abdoul Sam, 2010. "Impact of government-sponsored pollution prevention practices on environmental compliance and enforcement: evidence from a sample of US manufacturing facilities," Journal of Regulatory Economics, Springer, vol. 37(3), pages 266-286, June.
    7. Yu Matsuno, 2007. "Pollution control agreements in Japan: conditions for their success," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 103-141, June.
    8. Udith Jayasinghe-Mudalige & Alfons Weersink & Brady James Deaton & Mike Trant, 2007. "Effect of urbanisation on the adoption of environmental management systems in Canadian agriculture," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(3), pages 316-325.
    9. Mary Evans & Lirong Liu & Sarah Stafford, 2011. "Do environmental audits improve long-term compliance? Evidence from manufacturing facilities in Michigan," Journal of Regulatory Economics, Springer, vol. 40(3), pages 279-302, December.
    10. Brouhle, Keith & Griffiths, Charles & Wolverton, Ann, 2009. "Evaluating the role of EPA policy levers: An examination of a voluntary program and regulatory threat in the metal-finishing industry," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 166-181, March.
    11. Wu JunJie & Wirkkala Teresa M., 2009. "Firms' Motivations for Environmental Overcompliance," Review of Law & Economics, De Gruyter, vol. 5(1), pages 399-433, June.
    12. Anton, Wilma Rose Q., 2005. "The Choice of Management Practices: What Determines the Design of an Environmental Management System?," 2005 Annual meeting, July 24-27, Providence, RI 19503, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
    14. Daniel Matisoff, 2015. "Sources of specification errors in the assessment of voluntary environmental programs: understanding program impacts," Policy Sciences, Springer;Society of Policy Sciences, vol. 48(1), pages 109-126, March.
    15. Cody Jones, 2013. "Moving Beyond Profit: Expanding Research to Better Understand Business Environmental Management," Sustainability, MDPI, vol. 5(6), pages 1-29, June.
    16. Blackman, Allen & Guerrero, Santiago, 2012. "What drives voluntary eco-certification in Mexico?," Journal of Comparative Economics, Elsevier, vol. 40(2), pages 256-268.
    17. Johannes Urpelainen, 2011. "Frontrunners and Laggards: The Strategy of Environmental Regulation under Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 325-346, November.
    18. Berrone, Pascual & Gelabert, Liliana & Fosfuri, Andrea & Gomez-Mejia, Luis R., 2007. "Can institutional forces create competitive advantage? An empirical examination of environmental innovation," IESE Research Papers D/723, IESE Business School.
    19. Robert Innes & Abdoul G. Sam, 2008. "Voluntary Pollution Reductions and the Enforcement of Environmental Law: An Empirical Study of the 33/50 Program," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 271-296, May.
    20. Lily Hsueh, 2019. "Voluntary climate action and credible regulatory threat: evidence from the carbon disclosure project," Journal of Regulatory Economics, Springer, vol. 56(2), pages 188-225, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:20:y:2012:i:1:p:17-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.