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Mechanisms for Rebound Effects of Solar Electricity Prosuming in Germany

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  • Atasoy, Ayse Tugba

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Schmitz, Hendrik

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Madlener, Reinhard

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

Private households adopting solar photovoltaic panels can reduce their average electricity unit costs either by feeding the self-generated amount of electricity into the grid or by self-consuming it, or a combination of the two. Due to the achievable cost savings on the electricity bill and changes in consumer behavior and attitudes, rebound effects in solar prosuming can occur, leading to higher electricity consumption than otherwise. We estimate the solar rebound effects using a representative sample for Germany. Utilizing a propensity score matching approach, we show that the initial differences in electricity consumption are eliminated when comparing households which are similar in characteristics that help to explain electricity consumption, but differ in the binary adoption of solar panels. By using different regression specifications and sets of covariates, we differentiate also empirically between the distinct mechanisms that explain rebound effects in the context of solar prosuming. We find that the variation in rebound effects are mainly induced by the changes in the incentives to feed-in or self-consume the generated electricity.

Suggested Citation

  • Atasoy, Ayse Tugba & Schmitz, Hendrik & Madlener, Reinhard, 2021. "Mechanisms for Rebound Effects of Solar Electricity Prosuming in Germany," FCN Working Papers 10/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised 01 Jun 2023.
    • Handle: RePEc:ris:fcnwpa:2021_010
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Rebound Effects; Propensity Score Matching; Residential Energy; Electricity Consumption; Solar Photovoltaics; Germany;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D10 - Microeconomics - - Household Behavior - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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