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Toward Net Zero in the midst of the energy and climate crises: the response of residential photovoltaic systems

Author

Listed:
  • Francesco Pietro Colelli

    (Department of Economics, University Of Venice CÃ Foscari; CMCC Foundation)

  • Enrica De Cian

    (Department of Economics, University Of Venice CÃ Foscari; CMCC Foundation)

  • Wilmer Pasut

    (Department of Environmental Science, Informatics and Statistics, Ca' Foscari, University of Venice)

  • Lucia Piazza

    (Department of Economics, University Of Venice CÃ Foscari)

Abstract

This paper aims to provide insights on potential strategies for a sustainable energy transition amidst market fluctuations. We analyze the impact of PV adoption on electricity consumption during a volatile price time span, leveraging high-frequency consumption data of over 10,000 households in Northern Italy during the period of the 2022 energy crisis. Our findings reveal that PV adoption reduces electricity consumption responsiveness during extreme price and temperature events, enhancing energy security and affordability. Based on estimated demand, we measure changes in consumer surplus, highlighting substantial benefits from PV adoption: the change in the annual consumer surplus due to the 2022 price increase is around 300 euros for the median consumer with no PV and 133 euros when PV is adopted by a comparable median household.

Suggested Citation

  • Francesco Pietro Colelli & Enrica De Cian & Wilmer Pasut & Lucia Piazza, 2023. "Toward Net Zero in the midst of the energy and climate crises: the response of residential photovoltaic systems," Working Papers 2023:18, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2023:18
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    electricity demand; solar photovoltaics; energy prices; climate change;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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