Household participation in green-electricity programs

Matthew J. Kotchen and Michael R. Moore discuss the design of green-electricity programs and its impact on green-electricity capacity in the paper ‘Private provision of environmental public goods: Household participation in green-electricity programs‘ in the Journal of Environmental Economics and Management Volume 53, Issue 1, Pages 1-16 January 2007 see abstract .

The two types of green-electricity programs examined are:

1) programs based on a voluntary contribution mechanism, whereby a household donates money to finance an increase in the capacity for generating electricity from renewable sources (pure public good type mechanism).

2) green tariff mechanisms in which the household pays a price premium, that is, a higher tariff per kilowatt-hour of consumption, for green electricity (impure public good type mechanism).

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