Energy Demand Policies
Paper Session
Saturday, Jan. 4, 2025 8:00 AM - 10:00 AM (PST)
- Chair: Shaun McRae, Mexico Autonomous Institute of Technology
Shifting Household Power Demand Across Time: Incentives and Automation
Abstract
An increasing share of renewable energy in an energy system comes with the need to address intermittency and avoid outages by integrating elements such as storage or demand response. This paper analyses the flexibility of residential electricity demand in partnership with a large electricity distribution company in India. As part of a randomised control trial, we offer households simple Wi-Fi-enabled smart switches that control the operation of an appliance such as an air conditioner. We trigger 30-minute automated switch-offs through the smart switch and reward participants per unit of energy they avoid consuming during the switch-off event. On average, switch-off events lead to a 69% reduction in device usage during the event interval and a 74% cumulative reduction starting an hour prior and ending an hour after the event. Using data from the users’ smart meters, we find 8.5% reductions in household-level power usage during switch-off events, indicating that households do not substitute to other electricity uses during events. Furthermore, device power usage does not return to pre-switch-off levels at the end of events, which suggests that automated demand response programmes can not only deliver benefits to the energy system, but could also make household electricity use more efficient.Strategic Avoidance and the Welfare Impacts of Solar Panel Tariffs
Abstract
This study examines the effects of tariffs imposed by the United States on imported solar panels. We first provide definitive evidence that tariff-exposed firms shifted production to locations that did not face tariffs. We then develop a structural model to analyze welfare and employment effects. We find that the tariffs led to modest gains for manufacturers with domestic operations, but large losses in domestic consumer surplus and environmental benefits. Furthermore, the tariffs reduced domestic solar industry employment and wages on net. By contrast, using industrial policy to subsidize solar panel manufacturing could increase domestic production, employment, and welfare.Assessing the Impact of Minimum Energy Efficiency Standards for Rental Properties
Abstract
The global energy system is currently undergoing rapid transformation. Research indicates that rental homes remain behind in energy efficiency compared to owner-occupied residential buildings. Specifically, studies show landlords in the U.S. are less inclined to invest in high-efficiency measures. This reluctance stems from the fact that, when tenants are responsible for paying the energy bills, landlords do not reap the benefits from lower energy bills, giving rise to what is known as the split incentives or landlord-tenant problem. The cumulative impact of these inefficiencies results in increased energy consumption and expenses for renters, as well as contributing to excessive emissions. In 2020, with the intention of increasing renters’ living standards and curbing energy waste, the Gainesville City Commission in Florida adopted the Rental Housing Ordinance (RHO). This ordinance, which went into effect in October 2021, established a permit and inspection process for all residential rental units to raise energy efficiency and property maintenance standards. Using the list of homes with a rental license and the results from the rental inspections conducted since October 2021, this paper investigates whether the adoption of the RHO resulted in a decrease in energy consumption and energy bills, while also examining the social benefits arising from the potential reduction in pollutant emissions.Discussant(s)
Erich Muehlegger
,
University of California-Davis
Kenneth Gillingham
,
Yale University
Arik Levinson
,
Georgetown University
Dylan Brewer
,
Georgia Institute of Technology
JEL Classifications
- Q4 - Energy