Daniel Matisoff

We use household level data to explore residential electricity use patterns following installation of solar panels. Solar adoption leads to an increase in total electricity consumption relative to a matched non-adopting control group. Our point estimate translates to a rebound effect of 28.5%, suggesting that nearly a third of the electricity produced by a customer’s solar panels is used for increased energy services, rather than reduced grid electricity consumption. We explore several potential drivers of an increase in electricity consumption. These results have important implications for electricity planning and policy, suggesting that rooftop solar stimulates additional demand for electricity.

This article presents an overview of green building economics and policies through a survey of theoretical and empirical evidence concerning green building practices. We define green building policy as policies that affect the entire life of the building, from design and construction to operation and deconstruction. We examine the economics of green buildings in the United States, with particular emphasis on market failures in the building sector such as information problems and externalities. We also discuss how policy instruments are used to address these market failures. We present original data on the types and potential impacts of these policy instruments in the United States, along with a brief review of international green building programs. We conclude by describing challenges for the empirical study of green buildings and priorities for future research and policy in this area.

Green building adoption is driven by both performance-based benefits and marketing based benefits. Performance based benefits are those that improve performance or lower operating costs of the building or of building users. Marketing benefits stem from the consumer response to green certification. This study illustrates the relative importance of the marketing based benefits that accrue to Leadership in Energy and Environmental Design (LEED) buildings due to green signaling mechanisms, specifically related to the certification itself are identified. Of course, all participants in the LEED certification scheme seek marketing benefits. But even among LEED participants, the interest in green signaling is pronounced. The green signaling mechanism that occurs at the certification thresholds shifts building patterns from just below to just above the threshold level, and motivates builders to cluster buildings just above each threshold. Results are consistent across subsamples, though nonprofit organizations appear to build greener buildings and engage in more green signaling than for-profit entities. Using nonparametric regression discontinuity, signaling across different building types is observed. Marketing benefits due to LEED certification drives organizations to build "greener" buildings by upgrading buildings at the thresholds to reach certification levels. © 2014 American Chemical Society.

We perform content analysis on Carbon Disclosure Project (CDP) responses from 2003 to 2010, focusing on the extent to which firms account for indirect emissions and have exhibited convergence in carbon reporting. We also examine standardization in reporting and the variation of reporting behavior across industry and country. We find that the CDP has produced a mixed record of improved transparency. In some areas, such as Scope 2 emissions, the CDP has demonstrated an increase in transparency in later years. However, the transparency and quality of direct emissions and Scope 3 emissions have not improved over time. Japanese and European Union firms have increased transparency, while American firms have decreased transparency. Energy-intensive industries have either increased transparency or remained the same, while less energy-intensive industries have become less transparent. We demonstrate some evidence of a learning effect among firms after participating in the CDP survey. © 2012 John Wiley & Sons, Ltd and ERP Environment.

We use household level data to explore residential electricity use patterns following installation of solar panels. Solar adoption leads to an increase in total electricity consumption relative to a matched non-adopting control group. Our point estimate translates to a rebound effect of 28.5%, suggesting that nearly a third of the electricity produced by a customer’s solar panels is used for increased energy services, rather than reduced grid electricity consumption. We explore several potential drivers of an increase in electricity consumption. These results have important implications for electricity planning and policy, suggesting that rooftop solar stimulates additional demand for electricity.

This article presents an overview of green building economics and policies through a survey of theoretical and empirical evidence concerning green building practices. We define green building policy as policies that affect the entire life of the building, from design and construction to operation and deconstruction. We examine the economics of green buildings in the United States, with particular emphasis on market failures in the building sector such as information problems and externalities. We also discuss how policy instruments are used to address these market failures. We present original data on the types and potential impacts of these policy instruments in the United States, along with a brief review of international green building programs. We conclude by describing challenges for the empirical study of green buildings and priorities for future research and policy in this area.

© 2016 Elsevier Ltd.Under a total-factor framework, this manuscript constructs a slacks-based measure data envelopment analysis (SBM-DEA) model and an index of total-factor energy efficiency (TFEE) to investigate the energy efficiency of the 29 provincial-administrative regions (PARs) in China during 1997-2011. Applying spatial panel data models to explore the regional clustering and influential factors of energy efficiency in China's 29 provincial-administrative regions during 1997-2011, results show that China experienced a continuing increase in energy efficiency during the sample period. In addition, we find evidence of the diffusion of energy efficiency improvements. Research and development investment, particularly when interacted with increases in energy prices, and when government intervention is low, are a powerful drivers of efficiency improvements. We illustrate heterogeneous impacts across Chinese regions. Income gains in more industrialized provinces and education gains in less industrialized provinces also produce efficiency improvements. In contrast to existing literature, we do not find responsiveness to changes in energy prices, growth rates, or income per capita in less industrialized regions. These results highlight the uniqueness of the Chinese experience and warrant more in-depth exploration of the drivers of energy efficiency in China.

© 2014 Elsevier B.V.This research tests the impact of changes in fuel price to explain fuel use by electric utilities. We employ a three-stage least squares model that explains changes in fuel use as a function of changes in three fuel prices. This model is repeated across sub-samples of data aggregated at the plant level and operating holding company level. We expect that plants and holding companies reduce fuel use when fuel prices rise. Several fuel substitution effects within and across plants and holding companies are demonstrated, as well as several frictions. At the plant level, higher prices of natural gas lead to less natural gas consumption, less coal consumption, and more fuel oil consumption. At the operating holding company level, results demonstrate the inelasticity of coal use and the increases of natural gas in response to higher coal prices. Subsamples demonstrate heterogeneity of results across different plants. Results emphasize that technological, market, and regulatory frictions may hinder the performance of energy policies.

Green building adoption is driven by both performance-based benefits and marketing based benefits. Performance based benefits are those that improve performance or lower operating costs of the building or of building users. Marketing benefits stem from the consumer response to green certification. This study illustrates the relative importance of the marketing based benefits that accrue to Leadership in Energy and Environmental Design (LEED) buildings due to green signaling mechanisms, specifically related to the certification itself are identified. Of course, all participants in the LEED certification scheme seek marketing benefits. But even among LEED participants, the interest in green signaling is pronounced. The green signaling mechanism that occurs at the certification thresholds shifts building patterns from just below to just above the threshold level, and motivates builders to cluster buildings just above each threshold. Results are consistent across subsamples, though nonprofit organizations appear to build greener buildings and engage in more green signaling than for-profit entities. Using nonparametric regression discontinuity, signaling across different building types is observed. Marketing benefits due to LEED certification drives organizations to build "greener" buildings by upgrading buildings at the thresholds to reach certification levels. © 2014 American Chemical Society.

© 2014, © 2014 Taylor & Francis.The innovation of environmental policies and their subsequent diffusion throughout the American states has been the subject of significant academic attention. Using an event history analysis, a traditional geographic model for policy diffusion is tested against a model where states learn from peer groups, defined by political culture. There is evidence for state learning within peer groups but less support for diffusion across state borders. Policy characteristics, environmental conditions, economic resources, and political constraints and opportunities are tested as drivers of differences in policy adoption. More than any other factor, politics and political culture explains the adoption of energy and climate-change policies. These results also suggest that restricted models that test geographical mechanisms of policy diffusion likely omit important characteristics that are correlated across states, leading to biased findings regarding the geographical state diffusion models in the extant literature.

We perform content analysis on Carbon Disclosure Project (CDP) responses from 2003 to 2010, focusing on the extent to which firms account for indirect emissions and have exhibited convergence in carbon reporting. We also examine standardization in reporting and the variation of reporting behavior across industry and country. We find that the CDP has produced a mixed record of improved transparency. In some areas, such as Scope 2 emissions, the CDP has demonstrated an increase in transparency in later years. However, the transparency and quality of direct emissions and Scope 3 emissions have not improved over time. Japanese and European Union firms have increased transparency, while American firms have decreased transparency. Energy-intensive industries have either increased transparency or remained the same, while less energy-intensive industries have become less transparent. We demonstrate some evidence of a learning effect among firms after participating in the CDP survey. © 2012 John Wiley & Sons, Ltd and ERP Environment.

This study assesses the effectiveness of two types information disclosure programs - state-based mandatory carbon reporting programs and the voluntary Carbon Disclosure Project, which uses investor pressure to push firms to disclose carbon emissions and carbon management strategies. I match firms in each program to control groups of firms that have not participated in each program. Using panel data methods and a difference in differences specification, I measure the impact of each program on plant-level carbon emissions, plant-level carbon intensity, and plant level output. I find that neither program has generated an impact on plant-level carbon emissions, emissions intensity, or output. Placing this study in contrast with others that demonstrate improvements from mandatory information disclosure, these results suggest that how information is reported to stakeholders has important implications for program effectiveness. © 2012 Elsevier Ltd.

The Chicago Climate Exchange (CCX) and the Carbon Disclosure Project (CDP) are two private voluntary initiatives aimed at reducing carbon emissions and improving carbon management by firms. I sample power plants from firms participating in each of these programs, and match these to plants belonging to non-participating firms, to control for differences between participating and non-participating plants. Using a difference-in-differences model to control for unobservable differences between participants and non-participants, and to control for the trajectory of emissions prior to program participation, I find that the CCX is associated with a decrease in total carbon dioxide emissions for participating plants when non-publicly traded firms are included in the sample. Effects are produced largely by decreases in output. CCX participation is associated with increases in carbon dioxide intensity. The CDP is not associated with a decrease of carbon dioxide emissions or electricity generation, and program participation is associated with an increase in carbon dioxide intensity. I explore these results within the context of voluntary environmental programs to address carbon emissions. © 2012 Springer Science+Business Media B.V.

Over the past several decades, European international environmental institutions have evolved, heeding institutionalist calls for stronger institutions backed by sanctioning and dispute settlement mechanisms. This apparent increase in institutional strength has led to a corresponding increase of the behavioral effectiveness, or active compliance management of institutions as observed in the incidence of arbitral tribunal decisions. However, upon closer examination, it is apparent that this behavioral effectiveness has not been exclusively due to provisions for arbitral tribunal decisions within international environmental agreements. Rather, the incidence and enforcement of these arbitral tribunal decisions is linked to the institutional design of the enforcement mechanisms. Most international environmental agreements rely on parties to raise disputes and enforce commitments, causing individual countries to bear the cost of enforcement. In addition, bringing a dispute to an arbitral tribunal requires the accordance of the parties to the dispute. In contrast, the European Court of Justice allows for enforcement to originate from a strong central authority and for the cases of arbitration to be filed unilaterally. International environmental agreements that have been joined by the European Community and have a provision for an arbitral tribunal have stronger enforcement mechanisms, are more likely to result in enforcement action, and are more effective in generating behavioral change. © 2010 Springer Science+Business Media B.V.

With a new administration in Washington and a new consensus that carbon dioxide emissions are causing catastrophic climate change, it is becoming clear that the United States will soon adopt some form of market-based regulation scheme. Though many would argue that the United States should have instituted a regulatory scheme years ago, the country will reap one distinct advantage from having a late start: the ability to learn from the European Union's ambitious efforts to tackle the problem of industrial carbon emissions for nearly five years.There are many ways that governments and other regulating bodies can regulate and control industrial carbon emissions, but two of the main methods are the traditional "command and control" strategy in which government sets unwavering limits on how much carbon each business can emit, and a system of "tradable emissions permits"-sometimes called cap and trade-in which a government sets an emissions limit, or cap, for each business or industry and issues permits that correspond to the allowed emissions amounts. Businesses within the system can buy and sell emissions permits to each other, enabling those who need and can afford to emit more carbon to do so without the overall limit being exceeded.

This paper draws upon policy innovation literature and quantitatively explains the adoption of state climate change policies, leading to a broader question - what makes states more likely to adopt policies that provide a global public good? First, existing empirical evidence relating to state climate change policy adoption is reviewed. Following this brief discussion, several analytic approaches are presented that test specific hypotheses derived from the internal determinants and regional diffusion models of policy adoption. Policy diffusion is tested as a function of the motivations, resources, and obstacles of policy change. Motivations for policy innovation include environmental conditions and demands of citizens. Resources include state financial and geographic resources, such as wind and solar potential. Obstacles include a state's reliance on carbon-intensive industries such as coal and natural gas. The results show that internal factors, particularly citizens' demands, are stronger predictors of states' policies than are diffusion effects from neighboring states. © 2008 Policy Studies Organization.