Working Paper: NBER ID: w16117
Authors: Matthew J. Kotchen
Abstract: Can simple government programs effectively promote voluntary initiatives to reduce greenhouse-gas emissions? This paper provides an evaluation of how the Connecticut Clean Energy Communities program affects household decisions to voluntarily purchase "green" electricity, which is electricity generated from renewable sources of energy. The results suggest that, within participating communities, subsidizing municipal solar panels as matching grants for reaching green-electricity enrollment targets increases the number of household purchases by 35 percent. The Clean Energy Communities program thus demonstrates how mostly symbolic incentives can mobilize voluntary initiatives within communities and promote demand for renewable energy.
Keywords: climate policy; voluntary initiatives; green electricity; Connecticut Clean Energy Communities; household decisions
JEL Codes: Q2; Q4; Q58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CCEC program (A30) | household purchases of green electricity (D19) |
| CCEC program (A30) | participation rates (J22) |
| CCEC program (A30) | number of households purchasing green electricity (D19) |
| CCEC program (A30) | overall participation rate (J49) |
| CCEC program (A30) | participation rate in municipalities enrolled in CCEC vs. 20 by 2010 program (H79) |