Search

There is a vast literature on household solar-panel uptake but there are mixed results for many explanatory variables such as income, education, age, and race. This creates a major challenge for policymakers, who devise solar-panel policies that relate to variables such as income. This study uses logit, probit, and linear probability models, along with the matching method of entropy balancing. We use household data from the 2019 American Housing Survey. Results using entropy balancing suggest that high housing values and older respondent age are key factors promoting solar-panel uptake. Income has some positive impacts, although detailed analysis tends to show insignificance. Education and race variables have insignificant coefficients when controlling for key variables. This paper could provide a basis for future policy approaches, such as means testing based on asset thresholds rather than income thresholds. Keywords: Solar photovoltaic panel, Housing value, Household income, Education, Race, Age, 1. INTRODUCTION 1.1 Motivation Understanding the drivers of household solar-panel uptake is potentially challenging due to the diversity in prior-study results. For instance, there are mixed results for explanatory variables [...]

This paper uses data from the 2015 Residential Energy Consumption Survey to explore the extent to which renters' electricity use in the United States exceeds that of otherwise similar non-renters. Renting households are found to use approximately 9% more electricity than non-renters when controlling for location, socioeconomic, and many appliance-quantity controls. There are multiple factors that explain this extra electricity use, including inferior energy efficiency of appliances, behavioral factors, differences in bill payment responsibilities, and additional reliance by renters on electric space and water heaters. The paper finds that none of these factors are dominant. The phenomenon of renters' (conditionally) higher electricity use is thus best understood as one that emerges from multiple sources. Keywords: Split incentives, Rent, Electricity consumption, Efficiency, Household survey, United States, 1. INTRODUCTION How much extra electricity do renters use relative to comparable non-renters, and what explains any difference? Multiple factors may be relevant. In cases where landlords pay the energy [...]

There is considerable variation in research explaining household solar-panel investment, leading to mixed evidence regarding influences of income and capital. We provide analysis aiding interpretation of economic influences on solar-panel uptake in other studies. We conduct a meta-regression using 234 papers to provide analytical insights focusing on economic influences on solar-panel investment. We find that the research approach and context explain a range of income influences. More specifically, studies using household-level data are less likely to find negative income impacts compared to studies using aggregate data. Developing-country studies have been less likely to include income; but when income is included, developing-country studies have been more likely to find a significant link from income to solar-panel uptake. Capital (e.g., asset) impacts are nearly always positive and significant when included, but only 22 percent of analyzed studies included a relevant variable. Our concluding policy discussion suggests greater focus on assets for means testing. JEL Classification : D10, Q40, Q48, Q50 [ABSTRACT FROM AUTHOR]

Research on climate change mitigation has increasingly considered carbon pricing, with these efforts concentrating on reductions in carbon dioxide (CO2) emissions. Our comprehensive cross-country analysis extends this focus by quantitatively evaluating the effects of carbon pricing on four major pollutants: CO2, nitrous oxide (N2O), methane (CH4), and particulate matter (PM). We use regressions and introduce entropy balancing to this research area. Analyzing data from 132 countries from 1992 to 2019, we find that carbon pricing is associated with an average annual reduction in CO2 emissions by 3 percentage points. A one-unit increase in a coverage-weighted carbon price is associated with reductions in N2O emissions by approximately 0.1 percentage points. A shorter panel for 2010–2017 shows a larger impact of 0.3 percentage points for PM. These findings underline the efficacy of carbon pricing not just in curtailing CO2 but in significantly mitigating other harmful pollutants on a global scale. Reductions in pollutants beyond CO2 provide further motivation for policymakers to pursue carbon pricing. [ABSTRACT FROM AUTHOR]

Studies of health care expenditure often exclude explanatory variables measuring wealth, despite the intuitive importance and policy relevance. We use the Household, Income and Labour Dynamics in Australia Survey to assess impacts of income and wealth on health expenditure. We investigate four different dependent variables related to health expenditure and use three main methodological approaches. These approaches include a first difference model and introduction of a lagged dependent variable into a cross-sectional context. The key findings include that wealth tends to be more important than income in identifying variation in health expenditure. This applies for health variables which are not directly linked to means testing, such as spending on health practitioners and for being unable to afford required medical treatment. In contrast, the paper includes no evidence of different impacts of income and wealth on spending on medicines, prescriptions or pharmaceuticals. The results motivate two novel policy innovations. One is the introduction of an asset test for determining rebate eligibility for private health insurance. The second is greater focus on asset testing, rather than income tests, for a wide range of general welfare payments that can be used for health expenditure. Australia's world-leading use of means testing can provide a test case for many countries. [ABSTRACT FROM AUTHOR]

This article explores enhancement opportunities for Australian Government co‐contributions to superannuation accounts. The article's empirical foundation includes the distributions for variables related to saving, investment and risk perceptions in the 2022 wave of the Household, Income and Labour Dynamics in Australia (HILDA) Survey. As income or wealth increase, there are increases in the probabilities of individuals making additional superannuation contributions, having a saving horizon of at least five years, and being prepared to take more than average investment risks. Four policy changes are suggested in the article, with the potential for superannuation funds to independently implement some of these changes. [ABSTRACT FROM AUTHOR]

Greater uptake of solar panels on rental housing would have implications for housing affordability and would reduce greenhouse gas emissions. The influence of energy investments on housing values has been widely studied, with past research often finding a positive relationship. However, there is missing knowledge for the specific relationship between solar panels and housing rents. This study finds that Australian renters with solar panels pay approximately A$19 more in weekly housing rents than non-solar renters. The results suggest that landlords have been able to benefit from investments in solar panels through higher rent, with a payback period of around 5 years. The study provides context for policymakers across the world considering subsidies for solar panels on rental housing. The findings are robust across multiple methods including entropy balancing and are based on two large Australian household surveys. Supplemental data for this article is available online at https://doi.org/10.1080/02673037.2021.2004094. [ABSTRACT FROM AUTHOR]

Greater use of household solar-panel systems has the potential to improve energy access and affordability while reducing the risk of climate change. This article uses a survey of 6,000 households in Nepal, a developing economy, to enhance understanding of the factors driving solar-system uptake by households. A key contribution is the breadth of analysis. We find important influences for economic, social, and locational factors. In contrast, physical dwelling aspects, such as roof material, appear to be less important. Social influences explain extra variation in solar-panel uptake, when comparing social and economic influences, although some variables could be classified in multiple categories. For example, membership in a women's saving and credit cooperative is a socioeconomic factor that is associated with greater solar-panel adoption. Socioeconomic factors may be the most important for future policy innovations, given that existing policy already focuses on location. For instance, this article finds that solar adoption has been much higher in the most supported regions for the Renewable Energy Subsidy Policy. [ABSTRACT FROM AUTHOR]

Household financial stress is a persistent problem that can be exacerbated by shocks such as the COVID‐19 pandemic. This paper finds that assets are more important than income for explaining financial stress using the Household Expenditure Survey, conducted by the Australian Bureau of Statistics. Households in the bottom quintile for net assets are more likely to experience many dimensions of financial stress, with a magnitude of approximately 3 percentage points in most cases. Total income often has no identifiable impact on financial stress, all else equal, although the component of income based on investments may be a better predictor of financial stress. Further, there is a positive relationship between liabilities and financial stress. In addition, substantial financial stress is observable for recipients of payments for unemployment or disability, with lower impacts suggested for some other welfare groups. Three policy options are refining asset tests to provide higher benefits for low‐wealth households, raising benefits for particular welfare types including for those receiving unemployment and disability payments, and promoting financial literacy to avoid excessive liabilities. Financial stress likelihood varies across households. Those receiving unemployment or disability benefits are more likely to experience financial stress. Assets are more important than income in explaining financial stress. Refined policies for financial stress can therefore include higher benefits for some welfare types and greater reliance on assets in means testing. [ABSTRACT FROM AUTHOR]

This paper quantifies the factors contributing to Australia's gender gap in superannuation balances. Around 60 per cent of the gap can be attributed to the prior stock of superannuation, for respondents who had superannuation balances in both 2014 and 2018 in the Household Income and Labour Dynamics in Australia Survey. This is partly due to the accumulation of the prior gap with investment returns. Financial literacy and risk aversion explain around 7 per cent of the gap in total, such as through impacts on subsequent investment returns. Work patterns and wage rates affect contributions and explain approximately 30 per cent of the superannuation gap in total. [ABSTRACT FROM AUTHOR]

AbstractReducing carbon dioxide emissions in the aviation industry is a formidable challenge. Understanding airline travellers’ willingness to pay for emission reductions could lead to impactful changes in flight pricing and government policies. In this study, we employ a discrete choice experiment to more accurately gauge this willingness to pay. The experiment features a comprehensive analysis of both leisure and business traveller categories, utilising a realistic interface mirroring Google Flights for journeys between Los Angeles and New York. The findings demonstrate that, on average, business flyers exhibit a significantly higher willingness to pay for emission reductions compared to leisure flyers. Notably, a subset of emissions conscious leisure flyers also exhibits a markedly higher willingness to pay. Latent class modelling indicates that this emissions conscious group accounts for about 42% of the leisure flyer sample. The larger group of price focused leisure flyers does not display any significant willingness to pay for emission reduction. Another key finding is that ethical consumption behaviour, not just stronger perceptions related to climate change, is linked to emissions-reducing preferences among both types of flyers. These results provide valuable insights for policy and pricing strategies, emphasising the heterogeneity across and within the business and leisure flyer segments. [ABSTRACT FROM AUTHOR]

Hedonic models of housing prices face the risk of omitted variable bias due to the challenge of controlling for all relevant property attributes. The level of household financial assets is a key but underexplored control that may help to account for some of these difficult‐to‐observe property characteristics. Using large Australian household surveys, we find that controlling for household financial assets reduces the observed effect of having solar photovoltaic panels on housing prices. The elasticity of estimated housing price with respect to solar capacity is 0.09 for households with solar panels. Controlling for financial assets may be of use in other studies seeking to estimate the effect of home additions on housing prices. [ABSTRACT FROM AUTHOR]

We use a discrete choice experiment to quantify whether superannuation fund members value higher allocations of funds to renewable energy investments in their portfolios. Mixed logit modelling provides evidence that this valuation is driven by a fund member's environmental sentiment. Latent class modelling suggests that two classes of superannuation fund members exist: those whose preferences align with a renewable energy transition and those who are focused on financial returns. Our results suggest that the understanding of fiduciary duties, to act in the best interests of members, should be broader than a singular focus on financial returns. [ABSTRACT FROM AUTHOR]

To date there has been an absence of cross-country empirical studies on the efficacy of carbon pricing. In this paper we present estimates of the contribution of carbon pricing to reducing national carbon dioxide (CO2) emissions from fuel combustion, using several econometric modelling approaches that control for other key policies and for structural factors that are relevant for emissions. We use data for 142 countries over a period of two decades, 43 of which had a carbon price in place at the national level or below by the end of the study period. We find evidence that the average annual growth rate of CO2 emissions from fuel combustion has been around 2 percentage points lower in countries that have had a carbon price compared to countries without. An additional euro per tonne of CO2 in carbon price is associated with a reduction in the subsequent annual emissions growth rate of approximately 0.3 percentage points, all else equal. While it is impossible to fully control for all relevant influences on emissions growth, our estimates suggest that the emissions trajectories of countries with and without carbon prices tend to diverge over time. [ABSTRACT FROM AUTHOR]

Energy mix persistence is a defining characteristic of energy systems, for reasons including the long‐lived nature of energy infrastructure and the role of local endowments. This persistence is evident in current energy‐type use being strongly influenced by past use. Our analysis uses data for eight energy types and a large sample of countries, finding varying degrees of energy mix persistence. We also find evidence that carbon pricing appears to have played a key role in tilting energy mixes from coal towards renewable energy. Our estimates provide empirical support to policymakers seeking to implement carbon pricing to transition their energy systems in a lower‐carbon direction. [ABSTRACT FROM AUTHOR]

This paper quantifies factors affecting energy‐related financial stress in Australia, a key economic challenge facing a minority of households. We find that low net wealth is a particularly important factor affecting difficulty in paying energy bills. Having insulation reduces reported difficulties in being able to heat and cool homes. The odds of not paying energy bills on time are doubled by households not having solar panels. Other important factors contributing to energy‐related financial stress include being a renter, being a mortgage holder, having a large number of occupants in a household, and having a resident who requires energy‐consuming medical equipment. [ABSTRACT FROM AUTHOR]

Australia is a world leader in household uptake of solar photovoltaic systems. In this paper, we use household‐level data to identify economic, social, and environmental factors that influence actual uptake and the intention to install. We find that higher net wealth is generally associated with higher likelihood to install. Households that have mortgages, that spend more on electricity, and that pay higher average electricity prices are more likely to intend to install. Environmental preferences and related behaviours, property tenure, and space constraints are associated with both actual uptake and intention to install. We use data from the Survey of Income and Housing of 2015‐16 and the Household Energy Consumption Survey of 2012. [ABSTRACT FROM AUTHOR]

Around one‐third of Australia's coal‐fired power stations closed between 2012 and 2017, with most of the remainder expected to close over coming decades. Current investment in generation capacity is primarily in the form of alternative power, especially wind and solar. In this paper, we conduct an event study to assess the local unemployment effects of Australia's coal‐fired power station closures, an issue of considerable interest given the prominence of coal‐fired power stations in local economies. Our analysis uses monthly regional labour force survey data from the Australian Bureau of Statistics. We find that on average there has been an increase in local unemployment of around 0.7 percentage points after closures of coal‐fired power stations, an effect that tends to persist beyond the months immediately after closures. The findings raise questions about appropriate policy responses for dealing with local structural adjustment issues facing coal‐reliant communities. [ABSTRACT FROM AUTHOR]

Electricity is a vital factor underlying modern living standards, but there are many developing countries with low levels of electricity access and use. We seek to systematically identify the crucial elements underlying transitions toward greater electrification in developing countries. We use a cross-sectional regression approach with national-level data up to 2012 for 135 low- and middle-income countries. The paper finds that the effectiveness of governments is the most important governance attribute for encouraging the transition to increased electrification in developing countries, on average. The results add to the growing evidence on the importance of governance for development outcomes. Donors seeking to make more successful contributions to electrification may wish to target countries with more effective governments. [ABSTRACT FROM AUTHOR]