TY - JOUR
T1 - Impact of feed-in tariffs on electricity consumption
AU - Tanaka, Kenta
AU - Wilson, Clevo
AU - Managi, Shunsuke
N1 - Funding Information:
We gratefully acknowledge financial support from the Grant-in-Aid for Scientific Research (JSPS KAKENHI JP17K13737 and JP20H00648).
Publisher Copyright:
© 2021, Society for Environmental Economics and Policy Studies.
PY - 2022/1
Y1 - 2022/1
N2 - The diffusion of renewable energy sources is an important policy issue for all countries. In particular, feed-in tariffs (FITs) are a major policy instrument used to diffuse renewable energy sources in developed countries. A few recent studies have found a rebound effect from the installation of solar photovoltaic (PV) systems. However, consumer behavior in relation to electricity consumption following the installation of solar PV systems is largely unknown. In particular, previous studies do not effectively reveal the FIT effect on electricity consumption. Therefore, we set up a model to measure this effect and conduct empirical analysis to confirm the theoretical contribution of the improved model. Our estimation results based on the matching method show that the FIT scheme increases the consumption of electricity purchased from electricity companies if the FIT rate exceeds the electricity price. This finding is important for better understanding the true cost-benefit of FITs.
AB - The diffusion of renewable energy sources is an important policy issue for all countries. In particular, feed-in tariffs (FITs) are a major policy instrument used to diffuse renewable energy sources in developed countries. A few recent studies have found a rebound effect from the installation of solar photovoltaic (PV) systems. However, consumer behavior in relation to electricity consumption following the installation of solar PV systems is largely unknown. In particular, previous studies do not effectively reveal the FIT effect on electricity consumption. Therefore, we set up a model to measure this effect and conduct empirical analysis to confirm the theoretical contribution of the improved model. Our estimation results based on the matching method show that the FIT scheme increases the consumption of electricity purchased from electricity companies if the FIT rate exceeds the electricity price. This finding is important for better understanding the true cost-benefit of FITs.
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U2 - 10.1007/s10018-021-00306-w
DO - 10.1007/s10018-021-00306-w
M3 - Article
AN - SCOPUS:85102501351
SN - 1432-847X
VL - 24
SP - 49
EP - 72
JO - Environmental Economics and Policy Studies
JF - Environmental Economics and Policy Studies
IS - 1
ER -
