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Do green electricity tariffs increase household electricity consumption?

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  • Joachim Schleich
  • Johannes Schuler
  • Matthias Pfaff
  • Regine Frank

Abstract

In this paper we investigate whether households change electricity consumption after they switch to a green electricity tariff. Using metered data of household electricity consumption from a large provider of green electricity in Germany, our quasi-experimental analysis finds that household switching to a green tariff leads to a non-monetary renewable rebound effect of around 7.7%. Further, our findings imply that this renewable rebound effect is persistent over at least four years. These findings are observationally consistent with moral licencing effects which induce households to permanently change their habitual behaviours and/or to acquire additional electricity-consuming technologies. Thus, failure to account for a renewable rebound in policy evaluation may lead to systematically underestimate the costs of achieving energy and climate targets.

Suggested Citation

  • Joachim Schleich & Johannes Schuler & Matthias Pfaff & Regine Frank, 2023. "Do green electricity tariffs increase household electricity consumption?," Applied Economics, Taylor & Francis Journals, vol. 55(20), pages 2337-2348, April.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:20:p:2337-2348
    DOI: 10.1080/00036846.2022.2102574
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    Cited by:

    1. John List & Ioannis Pragidis & Michael Price, 2024. "Toward an Understanding of the Economics of Prosumers: Evidence from a Natural Field Experiment in Energy," Natural Field Experiments 00791, The Field Experiments Website.

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