Power from the People: Rooftop Solar and a Downward-Sloping Supply of Electricity

A-Tier
Journal: Journal of the Association of Environmental and Resource Economists
Year: 2019
Volume: 6
Issue: 6
Pages: 1135 - 1168

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using high-frequency data, I show that the supply of electricity by solar households can be downward sloping. I document that households receiving higher prices to sell electricity increase their own consumption as their panels produce more, relative to households receiving lower prices. I test several competing explanations and show that a dollar of electricity income increases electricity expenditures by 23 cents, an effect much larger than a standard income response. The fact that solar households treat income from electricity production as “electricity money” means that production subsidies may decrease the supply of electricity by solar homes.

Technical Details

RePEc Handle
repec:ucp:jaerec:doi:10.1086/705535
Journal Field
Environment
Author Count
1
Added to Database
2026-01-25