Public Policy Theses and Dissertations
Permanent URI for this collectionhttp://hdl.handle.net/1903/2803
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Item ENERGY EFFICIENCY IMPROVEMENT IN BUILDINGS: ESSAYS ON THE IMPACTS, ADOPTION, AND BENEFITS(2021) Liang, Jing; Qiu, Yueming (Lucy); Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)Energy is essential for human development; however, energy consumption is also responsible for large air and greenhouse gas emissions. As the concerns about global climate change have increased, reducing energy demand has gained more importance. This dissertation focuses on energy consumption in the building sector, especially the residential building sector. Energy efficiency and conservation, as a key strategy for reducing energy demand in the building sector, is favored by advocates and policymakers because it can be a cost-effective approach to reduce energy demand. This dissertation takes a three-essay format and adds to the discussion on energy efficiency and the energy efficiency gap. Essay 1 evaluates energy efficiency retrofits. Many past estimations of energy efficiency performance are based on the predicted savings from simulation or engineering models, and they overestimate the actual savings. This essay evaluates the electricity savings from Energize Phoenix program in Arizona, which includes 201 residential buildings and 636 commercial buildings during 2008-2013. Fixed effects panel regression is applied, and the results show energy savings are 12% for commercial buildings and 8% for residential buildings. The realized energy savings are 30-50% lower than the predicted ones by engineering models, implying that policymakers need to rely more on the empirical evaluations. Heterogeneity also exists among retrofits for different buildings. Essay 2 investigates the adoption of energy efficiency. Although many market and behavioral factors have been proposed to explain the low adoption level of low-carbon technologies, the impact of one particular factor-electricity rate has not been fully discussed in the existing literature. Essay 2 investigates the association between time-of-use (TOU) electricity rate and the adoption of solar panels and energy-efficient air conditioners in residential buildings. The empirical evidence suggests that TOU consumers are associated with a 27% higher likelihood of solar panel installation, but they are not more likely to adopt energy-efficient air conditioners (ACs). Essay 3 examines the existence of the energy efficiency gap and compares the social and private benefits from energy efficiency under different rates (TOU and non-TOU rate). This essay applies data on energy efficiency retrofits and hourly electricity demand for about 16,000 households during 2013-2017. A combination of a matching approach and fixed effects panel regression is employed. The results show that the private benefits of energy efficiency exceed the social benefits under both TOU and non-TOU rates but by different degrees. These results indicate that there should be potentially different levels of policy interventions towards energy efficiency for consumers on different rates.Item INTEGRATING SUSTAINABLE DEVELOPMENT GOALS INTO CLIMATE FINANCE PROJECTS: ASSESSING THE MARKET IMPACT OF CO-BENEFITS FROM CARBON OFFSETS(2020) Lou, Jiehong; Hultman, Nathan E; Patwardhan, Anand; Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)By design, climate finance projects have two fundamental features: climate benefits and sustainable development benefits. Climate finance is important for cutting emissions, but it can also deliver significant additional benefits, often termed “co-benefits.” The concept of co-benefits, although lacking a consist definition in the international arena, is so important, especially for the audiences from the developing world. Co-benefits are the backbone of a green and low-carbon development of these developing countries, where promoting high-quality economic development, maintaining economic, financial and energy security, protecting environment and controlling carbon emissions should achieved together. However, how the climate finance market values co-benefits remains poorly understood. By focusing on local co-benefits, this research highlights the importance of valuing co-benefits where projects are located, and how these projects deliver impacts for local communities. This dissertation looks at the question of co-benefits in three specific contexts by using both quantitative and qualitative methods as follows: First, I assess the likelihood that project co-benefits encourage buyers to pay more for Certified Emission Reductions (CERs) within the Clean Development Mechanism (CDM), the major international offset mechanism within a broader world of carbon finance. Second, I look at potential mechanisms of quality branding associated with the CDM to see whether these indicators in fact attract a price premium attributable to co-benefits. Third, I study the role of offset co-benefits in corporate behavior and decision-making in voluntary carbon markets. My research shows that in the CDM context, a project with a likelihood of delivering more co-benefits receives a higher CER price from buyers. The price difference between projects with the highest co-benefits and lowest co-benefits is $4.9/tCO2e on average or a difference of 27.6 percent. The large variability in the price of CER partially comes from the locations of the buyer and the project, while CER prices do not differ based on the buyer’s profit status, sector, or the number of projects they hosted. In the quality branding context, I see that quality control indicators (particularly the independently generated label of “Gold Standard”) have a significant effect on CER prices with the price premium is in the range of $1.13/tCO2e (6.6% of price increase due to the Gold Standard certification of co-benefits) to $4.2/tCO2e (29%). Additionally, I see a strong commitment from public finance in delivering local co-benefits through their willingness to pay a price premium. In the voluntary carbon markets, I find that corporate motivations show a large degree of consistency and orientation, which aligns with the findings on the purchasing behavior for offset standards. Companies with a primary motivation to reduce emissions will prioritize purchasing cost-effective offset projects. Alternately, companies with primary motivations for non-emission impacts (such as company values or market competitiveness) value co-benefits more, and are willing to pay more to fulfill these goals.Item Technology Diffusion in Climate Mitigation Modeling and Implications for Mitigation Targets(2014) de la Chesnaye, Francisco Carlos; Ruth, Matthias; Patwardhan, Anand; Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)Global climate mitigation analyses have been used to evaluate the challenges of reducing greenhouse gases and to inform climate change policymaking for over 30 years. Studies traditionally focus on projections of greenhouse gases over the 21st century based on key drivers such as population growth, economic growth, and the rate of technological change especially in climate mitigation or energy technologies. Any one of these factors can have an appreciable impact on emissions levels and the cost of mitigation particularly in the face of stringent mitigation targets. One area that has not been sufficiently studied is the impact of different rates of technology diffusion of advanced energy technologies between high-income and low- and middle-income countries. This is the topic of this dissertation. The standard approach in climate economic modeling is to assume that all technologies are available at the same time and rate across countries with different incomes and technological capabilities. This study applies the literature related to economic and technological convergence to first develop new estimates of technology diffusion for energy-related sectors across 112 countries of varying income levels. Then new greenhouse gas scenarios are developed with the Global Change Assessment Model (GCAM) to test the importance of different assumptions on technology diffusion versus other key modeling assumptions. The modeling results from this research show that the cost of meeting the same climate target could be as high as 60% to 80% in marginal cost terms and about 30% greater in total policy costs when different assumptions on diffusion rates of climate mitigation technologies between countries are used. These results clearly point to the need for greater evaluation on the importance of technology diffusion in climate mitigation modeling and also in the consideration of these results for climate change policy decision making.Item The Impact of Energy Saving Policies on Industries in China(2013) Zhu, Junming; Ruth, Matthias; Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)Current design and implementation of China's energy saving policies are characterized by multiple, mixed policy instruments and spatially based regulatory disparity. The dissertation replies on interviews, firm-level data, and industry-aggregate data to examine the impact of energy saving policy on firm-level energy saving and industry location in China. Case study research, using interviews with 20 firms in four industries and four locations, is applied to explain firm energy saving behaviors. The case studies show that competitiveness and legitimation are major motivations for energy saving under the policy influence of energy-saving agreements and capacity control and elimination. Extending from the case study findings, the dissertation examines on the basis of data of firms involved in the Top-1000 enterprise energy saving program the factors that contribute to energy efficiency improvements. Empirical results show that firms with less expansion and no new products are more likely to fulfill greater reduction of energy intensity for both existing and new production capacities. Their energy savings are driven by the pressure of lower individual and industry profit, higher electricity price and more subsidies, but are not correlated with any behavioral features identified in the previous literature. Spatially based regulatory disparity may direct industry growth to regions with lower regulation. Analysis of industry aggregate data from 2005 to 2010 confirms policy-induced industry location, and indicates that an 11% employment loss in manufacturing industries is associated with higher energy-saving regulation. The results suggest the need of future policy assistance for energy saving and resource conservation in regions with laxer regulations, and for the reallocation of labor and production. The dissertation complements the literature on the explanations for the energy efficiency gap, implications of policy instruments on firm behavior, and locational impact of environmental regulation. It suggests the effectiveness of combined mandatory, voluntary, and information policies designed to motivate firms and eliminate behavioral barriers, the usefulness of incorporating market-based policy in Chinese energy saving policies to encourage energy efficiency and mitigate relocation, and the need for further research into the cost effectiveness of financial incentives to meet efficiency targets for industries.Item Environmental Stewardship in the Private Sector: Arriving at a Green Hands Theory(2013) Aelion, Halley Mallama; Hultman, Nathan; Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)Views on the intent and outcomes of corporate social responsibility (CSR) range from laudatory to skeptical. Regardless of the mixed reception and questions raised about the meaning of CSR, it is clear that the private sector's increasing power in the 21st century requires a correspondingly well-defined range of responsibilities. This dissertation investigates why and how firms choose to engage in CSR. It does so through three essays that explore the private sector's approach to environmental stewardship CSR (ESCSR) with particular emphasis on the role of employees in ESCSR. The first essay engages in an empirical study that asks broad questions about private sector employees' opinions towards CSR. It asks how employees understand CSR; how they prioritize environmental goals under the CSR umbrella; and whether or not their CSR- and ESCSR-related activities impact their feelings of personal well-being and career fulfillment. The results of this essay's original survey suggest that the private sector's approach to ESCSR should leverage employees' interest in and enthusiasm for CSR and ESCSR to achieve environmental stewardship and CSR goals. The second essay investigates the actual extent to which private sector leadership engages with employees on matters related to CSR and ESCSR through both a statistical and case study. The statistical study asks what variables make firms more likely to afford employees a substantial role in CSR activities, resulting in the discovery that a more diverse and larger leadership body is a significant indicator of a firm's willingness to engage employees. The case study then pushes the statistical findings into more detail by illuminating three firms' rationales behind their ESCSR approaches. The final, ethics-focused essay builds on the findings of the first and second essays to propose an original theory that builds on the legal theory of clean hands to arrive at `green hands.' This green hands theory outlines a specific and normatively robust framework firms can adopt to achieve goals related both to employee and environmental stewardship. I conclude by discussing implications for policy recommendations and areas for future research.