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Utility Green Pricing Programs: A Statistical Analysis of Program Effectiveness

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  • Ryan Wiser
  • Scott Olson
  • Lori Bird
  • Blair Swezey

Abstract

Utility green pricing programs represent one way in which consumers can voluntarily support the development of renewable energy. The design features and effectiveness of these programs varies considerably. Based on a survey of utility program managers in the United States, this article provides insight into which program features might help maximize both customer participation in green pricing programs and the amount of renewable energy purchased by customers in those programs. We find that program length has a substantial impact on customer participation and purchases; to achieve higher levels of success, utilities will need to remain committed to their product offering for some time. Our findings also suggest that utilities should consider higher renewable energy purchase thresholds for residential customers in order to maximize renewable energy sales. Smaller utilities are found to be more successful than larger utilities, and we find some evidence that providing private benefits to non-residential participants can enhance success. Interestingly, we find little evidence that the cost of the green pricing product greatly impacts customer participation and renewable energy sales, at least over the narrow range of premiums embedded in our data set, and for the initial set of green power purchasers.

Suggested Citation

  • Ryan Wiser & Scott Olson & Lori Bird & Blair Swezey, 2005. "Utility Green Pricing Programs: A Statistical Analysis of Program Effectiveness," Energy & Environment, , vol. 16(1), pages 47-68, January.
    • Handle: RePEc:sae:engenv:v:16:y:2005:i:1:p:47-68
    DOI: 10.1260/0958305053516172
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    References listed on IDEAS

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    1. Wiser, Ryan H., 1998. "Green power marketing: increasing customer demand for renewable energy," Utilities Policy, Elsevier, vol. 7(2), pages 107-119, June.
    2. Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
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    Cited by:

    1. Dagher, Leila & Bird, Lori & Heeter, Jenny, 2017. "Residential green power demand in the United States," Renewable Energy, Elsevier, vol. 114(PB), pages 1062-1068.
    2. 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.

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