IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The role of public policy in emerging green power markets: an analysis of marketer preferences

Listed author(s):
  • Wiser, R. H.
Registered author(s):

    Green power marketing has been heralded by some as a means to create a private market for renewable energy that is driven by customer demand for green products. This article challenges the premise -- sometimes proffered in debates over green markets -- that profitable, sizable, credible markets for green products will evolve naturally without supportive public policies. Relying primarily on surveys and interviews of US green power marketers, the article examines the role of specific regulatory and legislative policies in 'enabling' the green market, and searches for those policies that are believed by marketers to be the most conducive or detrimental to the expansion of the green market. We find that marketers: (1) believe that profitable green power markets will only develop if a solid foundation of supportive policies exists; (2) believe that establishing overall price competition and encouraging customer switching are the top priorities; (3) are somewhat leery of government-sponsored or mandated public information programs; and (4) oppose three specific renewable energy policies that are frequently advocated by renewable energy enthusiasts, but that may have negative impacts on the green marketers' profitability. The stated preferences of green marketers shed light on ways to foster renewables by means of the green market. Because the interests of marketers do not coincide perfectly with those of society, however, this study also recognizes other normative perspectives and highlights policy tensions at the heart of current debates related to green markets. By examining these conflicts, we identify three key policy questions that should direct future research: To what extent should price competition and customer switching be encouraged at the expense of cost shifting? What requirements should be imposed to ensure credibility in green products and marketing? How should the green power market and broader renewable energy policies interact?

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S1364-0321(99)00015-5
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 4 (2000)
    Issue (Month): 2 (June)
    Pages: 177-212

    as
    in new window

    Handle: RePEc:eee:rensus:v:4:y:2000:i:2:p:177-212
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Wiser, Ryan H., 1998. "Green power marketing: increasing customer demand for renewable energy," Utilities Policy, Elsevier, vol. 7(2), pages 107-119, June.
    2. Nakarado, Gary L, 1996. "A marketing orientation is the key to a sustainable energy future," Energy Policy, Elsevier, vol. 24(2), pages 187-193, February.
    3. Fouquet, Roger, 1998. "The United Kingdom demand for renewable electricity in a liberalised market," Energy Policy, Elsevier, vol. 26(4), pages 281-293, March.
    4. Costello, Kenneth W., 1995. "The next Gordian Knot for state regulators and electric utilities: The unbundling of retail services," The Electricity Journal, Elsevier, vol. 8(9), pages 38-49, November.
    5. Rader, Nancy A. & Norgaard, Richard B., 1996. "Efficiency and sustainability in restructured electricity markets: the renewables portfolio standard," The Electricity Journal, Elsevier, vol. 9(6), pages 37-49, July.
    6. Paul L. Joskow, 1998. "Electricity Sectors in Transition," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 25-52.
    7. Asmus, Peter, 1997. "Power to the people: local governments go green," The Electricity Journal, Elsevier, vol. 10(9), pages 78-82, November.
    8. Ridley, Scott, 1997. "Local government: the sleeping giant in electric industry restructuring," The Electricity Journal, Elsevier, vol. 10(9), pages 13-21, November.
    9. Joskow, Paul L., 1996. "Does stranded cost recovery distort competition?," The Electricity Journal, Elsevier, vol. 9(3), pages 31-45, April.
    10. Beales, Howard & Craswell, Richard & Salop, Steven C, 1981. "The Efficient Regulation of Consumer Information," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 491-539, December.
    11. Borenstein, Severin & Bushnell, James & Kahn, Edward & Stoft, Steven, 1995. "Market power in California electricity markets," Utilities Policy, Elsevier, vol. 5(3-4), pages 219-236.
    12. Hahn, Robert W & Stavins, Robert N, 1992. "Economic Incentives for Environmental Protection: Integrating Theory and Practice," American Economic Review, American Economic Association, vol. 82(2), pages 464-468, May.
    13. Coase, R H, 1992. "The Institutional Structure of Production," American Economic Review, American Economic Association, vol. 82(4), pages 713-719, September.
    14. Tye, William B. & Graves, Frank C., 1996. "Stranded cost recovery and competition on equal terms," The Electricity Journal, Elsevier, vol. 9(10), pages 61-70, December.
    15. Garber, Don & Hogan, Willian W. & Ruff, Larry, 1994. "An efficient electricity market: Using a pool to support real competition," The Electricity Journal, Elsevier, vol. 7(7), pages 48-60, September.
    16. Costello, Kenneth W. & Graniere, Robert J., 1997. "The outlook for a restructured U.S. electric power industry: lessons from deregulation," The Electricity Journal, Elsevier, vol. 10(4), pages 81-91, May.
    17. Rábago, Karl & Wiser, Ryan & Hamrin, Jan, 1998. "The Green-e program: an opportunity for customers," The Electricity Journal, Elsevier, vol. 11(1), pages 37-45.
    18. Janet A. Weiss & Mary Tschirhart, 1994. "Public information campaigns as policy instruments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 82-119.
    19. David M. Newbery, 1995. "Power Markets and Market Power," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 39-66.
    20. Rohrbach, John, 1999. "Made in the Keystone State: Pennsylvania's Approach to Retail Electric Competition," The Electricity Journal, Elsevier, vol. 12(1), pages 26-39, January.
    21. Hartman, Raymond S. & Tabors, Richard D., 1998. "Optimal operating arrangements in the restructured world: economic issues," Energy Policy, Elsevier, vol. 26(2), pages 75-83, February.
    22. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    23. Aleksandr Rudkevich & Max Duckworth & Richard Rosen, 1998. "Modeling Electricity Pricing in a Deregulated Generation Industry: The Potential for Oligopoly Pricing in a Poolco," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 19-48.
    24. Francis M. Bator, 1958. "The Anatomy of Market Failure," The Quarterly Journal of Economics, Oxford University Press, vol. 72(3), pages 351-379.
    25. Landon, John H. & Kahn, Edward P., 1996. "Retail access pilot programs: where's the beef?," The Electricity Journal, Elsevier, vol. 9(10), pages 19-25, December.
    26. Talbot, Neil, 1999. "The Right Path for Electricity Restructuring: 10 Guidelines for State Legislation," The Electricity Journal, Elsevier, vol. 12(1), pages 16-25, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:4:y:2000:i:2:p:177-212. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.