IDEAS home Printed from https://ideas.repec.org/a/eee/japwor/v68y2023ics0922142523000373.html
   My bibliography  Save this article

To use or not to use, that is the question: Income and substitution effects in the feed-in tariff system for solar-generated electricity

Author

Listed:
  • Yang, Xinyue
  • Matsumoto, Shigeru

Abstract

Feed-in tariff (FIT) is an important worldwide initiative to encourage renewable electricity technologies. Under the Japanese FIT system, households with solar panels decide the amount of both self-consumption and sales to the power company. By analyzing the household self-consumption and sales behaviors of solar-generated electricity obtained from the Ministry of the Environment of Japan, we examine (1) whether the rate of increase in electricity sales by households is higher or lower than the rate of increase in solar power generation and (2) whether self-consumption and sales behaviors of solar-generated electricity differ among households with different sales prices. The results show that the rate of increase in electricity sales is lower than that in solar electricity generation. This suggests that households increase their self-consumption as solar power generation increases. However, as the rate of increase in self-consumption is relatively low, solar-generated electricity is considered as a necessary good. Furthermore, we find that higher sales prices induce households to reduce their self-consumption and increase solar electricity sales to power companies.

Suggested Citation

  • Yang, Xinyue & Matsumoto, Shigeru, 2023. "To use or not to use, that is the question: Income and substitution effects in the feed-in tariff system for solar-generated electricity," Japan and the World Economy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:japwor:v:68:y:2023:i:c:s0922142523000373
    DOI: 10.1016/j.japwor.2023.101211
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0922142523000373
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.japwor.2023.101211?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Feed-in Tariff; Income Effect; Solar Electricity; Subsection Effect;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:japwor:v:68:y:2023:i:c:s0922142523000373. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505557 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.