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Are Federal Energy Tax Credits Effective? A Western United States Survey

Edwin H. Carpenter and S. Theodore Chester, Jr.

Year: 1984
Volume: Volume 5
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No2-10
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Abstract:
The residential energy credit provided by the federal Energy Tax Act (1977) cannot be carried beyond December 31, 1987, and the Reagan administration has indicated a disinclination to support an extension of its provisions, in either its current or an altered form. Its likely demise indicates nothing about the Act's effectiveness in getting homeowners to invest in energy conservation or solar devices. Rather, it is a reflection of the Reagan philosophy of letting market conditions determine energy conservation decisions. Since the administration is not explicitly passing judgment on the success or failure of residential tax credits, important questions regarding their efficacy remain to be answered. This paper will attempt to shed light on this question. It will examine data derived from a random sample of Western United States homeowners to determine awareness and use of the federal energy tax credit; the role of climate and dwelling type; and the influence of selected socioeconomic factors on the use of energy tax credits. Most important, it will seek to determine the extent to which conservation decisions were contingent on the availability of the tax credits, i, e., what proportion of investments were made wholly or predominantly because of their special tax inducements and what proportion would have been made in any case.



Residential Demand for Electrical Appliances and Electricity in the Federal Republic of Germany

Rudolf K.-H. Dennerlein

Year: 1987
Volume: Volume 8
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No1-5
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Abstract:
The description and the forecast of residential electricity consumption is not only important for many areas of economic policy but also for the long-term investment plans of enterprises supplying electrical power. In the past most projections of future residential electricity demand have missed their target values. Besides erroneous assumptions concerning the development of exogeneous variables, there is strong evidence that misspecification of underlying relations and neglect of aggregation problems have contributed to this.



Willingness to Pay for Energy Conservation and Free-Ridership on Subsidization: Evidence from Germany

Peter Grosche and Colin Vance

Year: 2009
Volume: Volume 30
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol30-No2-7
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Abstract:
Understanding the determinants of home-efficiency improvements is significant to a range of energy policy issues, including the reduction of fossil fuel use and environmental protection. This paper analyzes retrofit choices by assembling a unique data set merging a nationwide household survey from Germany with regional data on wages and construction costs. To explore the influence of both heterogeneous preferences and correlation among the utility of alternatives, we estimate conditional-, random parameters-, and error components logit models that parameterize the influence of costs, energy savings, and household-level socioeconomic attributes on the likelihood of undertaking one of 16 renovation options. We use the model coefficients to derive household-specific marginal Willingness to Pay estimates, and with these assess the extent to which free-ridership may undermine the effectiveness of recently implemented programs that subsidize the costs of retrofits.



Urban Residential Energy Demand and Rebound Effect in China: A Stochastic Energy Demand Frontier Approach

Kerui Du, Shuai Shao, and Zheming Yan

Year: 2021
Volume: Volume 42
Number: Number 4
DOI: 10.5547/01956574.42.4.kdu
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Abstract:
The energy rebound effect is a potential threat to energy-saving targets based on energy efficiency improvements. This paper employs a stochastic energy demand frontier model to analyze the energy demand and rebound effect in China's urban residential sector. Using a panel data set of 30 Chinese provincial-level regions over the period 2001–2014, for the first time, we investigate the degrees and determinants of China's urban residential energy demand and energy rebound effect. The results show that residents' income level, energy price, temperature deviation, population scale, household size, and district heating system are significant influencing factors of residential energy consumption. Regarding the energy rebound effect, we find that energy price is negatively correlated with the rebound effect, and an inverted U-shaped relationship between residents' income level and rebound-effect size exists. The magnitude of the rebound effect varies across regions, with an average of 65.4%. The main policy implication generated by this study is that it should be in urgent need of energy pricing reform to mitigate the rebound effect in China.



Residential CO2 Emissions in Europe and Carbon Taxation: A Country-Level Assessment

Dorothée Charlier, Mouez Fodha, and Djamel Kirat

Year: 2023
Volume: Volume 44
Number: Number 5
DOI: 10.5547/01956574.44.4.dcha
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Abstract:
This paper examines the determinants of residential CO2 emissions, which are not covered by the European Union Emissions Trading System (EU ETS), in 19 European countries between 2000-2017. Using both static and dynamic panel models, we found strong relationships between CO2 emissions per capita, GDP per capita, energy prices and heating needs. We then assessed the impact of European carbon taxation and show that a €20/tonne CO2 tax lowers emissions by 1% on average. We found that this tax affects countries differently in terms of tax revenue-to-GDP ratio. Poland and the Czech Republic would have to pay the highest contribution, and Portugal and Denmark the lowest. Finally, we propose a scenario that equalizes countries' tax burdens. We show that, were Europe to redistribute all tax revenues, the main beneficiaries would be Poland and Belgium, while Denmark and Luxembourg would have to pay a surtax.





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