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Do liberal home owners consume less electricity? A test of the voluntary restraint hypothesis

Author

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  • Costa, Dora L.
  • Kahn, Matthew E.

Abstract

Using a unique data set that merges an electric utility’s residential customer monthly electricity consumption in 2008 with household level data on demographics, structure and neighborhood characteristics and the political party of registration for the head of household, this paper documents that liberal households consume less electricity than observationally identical households. In the absence of first best carbon pricing, such “voluntary restraint” helps to mitigate the challenge of climate change.

Suggested Citation

  • Costa, Dora L. & Kahn, Matthew E., 2013. "Do liberal home owners consume less electricity? A test of the voluntary restraint hypothesis," Economics Letters, Elsevier, vol. 119(2), pages 210-212.
  • Handle: RePEc:eee:ecolet:v:119:y:2013:i:2:p:210-212
    DOI: 10.1016/j.econlet.2013.02.020
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    References listed on IDEAS

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    1. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    2. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 129-145, September.
    3. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    4. Koichiro Ito, 2014. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," American Economic Review, American Economic Association, vol. 104(2), pages 537-563, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chapter Nine: Endogenous "Green" Preferences
      by Matthew Kahn in Environmental and Urban Economics on 2013-08-04 21:10:00
    2. The Consequences of Ideology
      by Matthew Kahn in Environmental and Urban Economics on 2014-08-13 20:18:00
    3. Moral Hazard and NBA Player Effort Before and After They Sign Long Term Contracts
      by Matthew Kahn in Environmental and Urban Economics on 2017-01-06 22:14:00
    4. Voluntary Restraint in the Age of President Trump
      by Matthew Kahn in Environmental and Urban Economics on 2017-04-03 07:53:00

    Citations

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    Cited by:

    1. Matthew J. Holian & Matthew E. Kahn, 2014. "Household Demand for Low Carbon Public Policies: Evidence from California," NBER Working Papers 19965, National Bureau of Economic Research, Inc.
    2. Schmidt, Stephan & Weigt, Hannes, 2013. "A Review on Energy Consumption from a Socio-Economic Perspective: Reduction through Energy Efficiency and Beyond," Working papers 2013/15, Faculty of Business and Economics - University of Basel.
    3. Agarwal, Sumit & Satyanarain, Rengarajan & Sing, Tien Foo & Vollmer, Derek, 2016. "Effects of construction activities on residential electricity consumption: Evidence from Singapore's public housing estates," Energy Economics, Elsevier, vol. 55(C), pages 101-111.
    4. Matthew J. Holian & Matthew E. Kahn, 2015. "Household Demand for Low Carbon Policies: Evidence from California," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(2), pages 205-234.
    5. Andreas Ziegler, 2017. "Economic calculus or personal and social values? A micro-econometric analysis of the acceptance of climate and energy policy measures," MAGKS Papers on Economics 201716, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Yamamura, Eiji, 2014. "Time preference and perceptions about government spending and tax: Smokers’ dependence on government support," MPRA Paper 55659, University Library of Munich, Germany.
    7. Conte, Marc N. & Jacobsen, Grant D., 2016. "Explaining Demand for Green Electricity Using Data from All U.S. Utilities," Energy Economics, Elsevier, vol. 60(C), pages 122-130.
    8. Gunnar Gutsche & Anja Köbrich León & Andreas Ziegler, 2016. "On the relevance of psychological motives, values, and norms for socially responsible investments: An econometric analysis," MAGKS Papers on Economics 201641, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    9. Andreas Ziegler, 2015. "On the relevance of ideological identification and environmental values for beliefs and attitudes toward climate change: An empirical cross country analysis," MAGKS Papers on Economics 201516, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. repec:eee:eneeco:v:63:y:2017:i:c:p:144-153 is not listed on IDEAS
    11. Ziegler, Andreas, 2015. "On the relevance of ideology and environmental values for climate change beliefs, climate policy support, and climate protection activities: An empirical cross country analysis," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112918, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Electricity consumption; Ideology; Environmentalism;

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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