Explaining Demand for Green Electricity Using Data From All U.S. Utilities

Posted: 18 Mar 2021

See all articles by Grant Jacobsen

Grant Jacobsen

University of Oregon - School of Planning, Public Policy, and Management

Marc Conte

University of California, Santa Barbara (UCSB) - Department of Economics

Date Written: September 30, 2016

Abstract

Green electricity programs enable households to voluntarily contribute to the development of renewable electricity by purchasing green electricity through their local utility. Using a dataset of all utilities in the United States, this paper explores the utility, consumer, and program characteristics that influence participation levels in green electricity, as well as whether a utility chooses to offer a program. Among other results, we find that the key determinants of program participation are the education of the consumer base and the affordability of the green electricity program. Our results enhance understanding of private provision of environmental public goods and could aid in ex ante evaluations of whether a green electricity program is likely to cover its administrative costs or be a cost-effective way of improving environmental quality.

Keywords: green demand, green electricity programs, private provision of environmental public goods, renewable energy

JEL Classification: H41, Q42, Q50

Suggested Citation

Jacobsen, Grant and Conte, Marc, Explaining Demand for Green Electricity Using Data From All U.S. Utilities (September 30, 2016). Energy Economics 60: 122-130, 2016, Available at SSRN: https://ssrn.com/abstract=3788607

Grant Jacobsen (Contact Author)

University of Oregon - School of Planning, Public Policy, and Management ( email )

1280 University of Oregon
Eugene, OR 97403
United States

Marc Conte

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States

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