Residential Green Power Demand in the United States

Lori Bird, Jenny Heeter, Leila Dagher

Research output: Contribution to journalArticlepeer-review

17 Scopus Citations

Abstract

This paper investigates the demand determinants of green power in the U.S. residential sector. The data employed were collected by the National Renewable Energy Laboratory and consist of a cross-section of seven utilities observed over 13 years. A series of tests are performed that resulted in estimating a demand equation using the one-way cross-section random effects model. As expected, we find that demand is highly price inelastic. More interestingly though, is that elasticity with respect to number of customers is 0.52 leading to the conclusion that new subscribers tend to purchase less green power on average than the existing customers. Another compelling finding is that obtaining accreditation will have a 28.5% positive impact on consumption. Knowing that gaining green accreditation is important to the success of programs, utilities may want to seek certification and highlight it in their advertising campaigns.
Original languageAmerican English
Pages (from-to)1062-1068
Number of pages7
JournalRenewable Energy
Volume114
Issue numberPart B
DOIs
StatePublished - 2017

NREL Publication Number

  • NREL/JA-6A20-69004

Keywords

  • green power
  • green tariff
  • panel data
  • price elasticity
  • renewable energy
  • voluntary market

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