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Does Absolution Promote Sin? A Conservationist’s Dilemma

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  • Matthew Harding

    (University of California - Irvine)

  • David Rapson

    (University of California - Davis)

Abstract

This paper shows that households signing up for a green program exhibit an intriguing behavioral rebound effect: a promise to fully offset customers’ carbon emissions resulting from electricity usage increases their energy use post-adoption by 1–3%. The response is robust across empirical specifications, and is consistent with an economic model of rational energy consumption. Our results provide a cautionary tale for designing green product strategies in which the adoption of a product may lead to unexpected consequences.

Suggested Citation

  • Matthew Harding & David Rapson, 2019. "Does Absolution Promote Sin? A Conservationist’s Dilemma," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 923-955, July.
    • Handle: RePEc:kap:enreec:v:73:y:2019:i:3:d:10.1007_s10640-018-0301-5
    DOI: 10.1007/s10640-018-0301-5
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    Cited by:

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    2. Fikru, Mahelet G. & Canfield, Casey, 2024. "Choosing both/and: Encouraging green energy purchases in community choice aggregation," Energy Policy, Elsevier, vol. 185(C).
    3. Simon Mathex & Lisette Ibanez & Raphaële Préget, 2023. "Distinguishing economic and moral compensation in the rebound effect: A theoretical and experimental approach," Working Papers hal-04071161, HAL.
    4. Stehr, Frauke & Werner, Peter, 2021. "Making Up for Harming Others — An Experiment on Voluntary Compensation Behavior," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242396, Verein für Socialpolitik / German Economic Association.
    5. Fikru, Mahelet G. & Canfield, Casey, 2022. "Demand for renewable energy via green electricity versus solar installation in Community Choice Aggregation," Renewable Energy, Elsevier, vol. 186(C), pages 769-779.
    6. Ahundjanov, Behzod B. & Noel, Michael D., 2021. "What’s in a name? The incidence of gasoline excise taxes versus gasoline carbon levies," International Journal of Industrial Organization, Elsevier, vol. 76(C).
    7. Stojanovski, Ognen & Leslie, Gordon W. & Wolak, Frank A. & Huerta Wong, Juan Enrique & Thurber, Mark C., 2020. "Increasing the energy cognizance of electricity consumers in Mexico: Results from a field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    8. Lin, Boqiang & Zhu, Penghu, 2021. "Has increasing block pricing policy been perceived in China? Evidence from residential electricity use," Energy Economics, Elsevier, vol. 94(C).

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