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The social welfare implications of electrification in the U.S. residential energy market

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  • Hill, Alexander

Abstract

Concerns over global climate change have led to support for household electrification to reduce CO2 emissions. However, due to the cost of mandating household electrification and the lack of an emissions-free grid, the social net benefit of this policy is unknown. Using a discrete choice empirical strategy, this paper estimates the tradeoff between household willingness to pay to avoid an electrification mandate and its environmental benefits in residential space and water heating markets. Compared with the counterfactual, the mandate has a net social cost of $47 billion annually from 2025 to 2050, largely from households in the Northeast and North Midwest.

Suggested Citation

  • Hill, Alexander, 2025. "The social welfare implications of electrification in the U.S. residential energy market," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:jeeman:v:131:y:2025:i:c:s0095069625000208
    DOI: 10.1016/j.jeem.2025.103136
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    1. Xuefei Zhao & Biyi Zhou & Qianling Zhou, 2025. "The Impact of Environmental Incentive Policies on the Value of New Energy Enterprises—Evidence from China’s New Energy Demonstration Cities," Sustainability, MDPI, vol. 17(19), pages 1-35, September.

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    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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