Incentivizing Energy Efficiency: Explaining Local Commitment to Energy Efficiency in Cities with Municipal-Owned Utilities

29 Pages Posted: 1 Aug 2011 Last revised: 4 Nov 2014

See all articles by Hongtao Yi

Hongtao Yi

Florida State University

David Matkin

Askew School of Public Administration and Policy

Richard C. Feiock

Florida State University - Askew School of Public Administration and Policy

Date Written: 2011

Abstract

Municipal-owned utilities perform an important role in local government efforts to implement energy-efficiency strategies and practices. Utility ownership provides unique opportunities for local governments to involve citizens in “green” initiatives. This paper seeks to understand why some governments with municipal-owned utilities invest resources on energy-efficiency strategies while others do not. We investigate this question by examining the use of energy-efficiency initiatives by municipal-owned utilities in American local government. We argue that spending on energy-efficiency strategies is affected by (1) cost considerations, (2) city political and fiscal conditions, and (3) citizen pressures. With data collected for the 145 municipal-owned utilities in cities with populations over 25,000, we test these relationships with a Heckman Selection Model. We find that the decision to adopt an energy-efficiency program is associated with siting difficulties and available generation capacity. The level of energy-efficiency expenditures is associated with a jurisdiction’s form of government and the availability of local retail partners. The implications of these findings for theory and practice are discussed in conclusion.

Keywords: Energy Efficiency; Demand-side Management; Municipal-Owned Utilities

JEL Classification: Q48

Suggested Citation

Yi, Hongtao and Matkin, David and Feiock, Richard C., Incentivizing Energy Efficiency: Explaining Local Commitment to Energy Efficiency in Cities with Municipal-Owned Utilities (2011). APSA 2011 Annual Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1901253

Hongtao Yi (Contact Author)

Florida State University ( email )

Tallahasse, FL 32306
United States

David Matkin

Askew School of Public Administration and Policy ( email )

P.O. Box 2250
Tallahassee, FL 32306-2250
United States

Richard C. Feiock

Florida State University - Askew School of Public Administration and Policy ( email )

P.O. Box 2250
Tallahassee, FL 32306-2250
United States

HOME PAGE: http://askew.fsu.edu

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