THREE ESSAYS ON DECARBONIZATION STRATEGIES

Abstract

Efforts toward decarbonization are vital to achieving future net-zero carbon emissions. Managing energy demand, shifting from fossil fuels to low-carbon sources such as renewables, and deploying carbon capture, utilization, and storage (CCUS) technologies are all effective decarbonization strategies. This dissertation comprises three essays exploring demand-side decarbonization strategies.Essay 1 evaluates the effectiveness of the electricity rate structure. This essay examines whether commercial consumers respond to nonlinear pricing schedules. I investigate a four-tiered rate structure from 5/1/2013 to 12/31/2016 in Phoenix Metropolitan, Arizona, including 597 commercial accounts. Hourly electricity consumption data makes it possible to detect consumption changes at each cutoff. This essay finds that consumers with higher usage tend to be more sensitive to average prices, while consumers with lower usage are more sensitive to marginal prices. The results indicate that nonlinear rate structures can reduce electricity consumption, particularly for commercial consumers with lower energy demand. Furthermore, policymakers should tailor conservation policies differently for commercial electricity consumers to manage energy demand. Essay 2 investigates the co-adoption of renewable technologies. While market and behavioral factors have been attributed to the low adoption rate of low-carbon technologies, one factor has yet to be fully explored - the network of renewable energy actors. This essay focuses on the residential co-adoption of solar PV and battery storage. The results confirm the importance of central coordinators and the need for highly cooperative groups among involved RE actors to advocate for co-adoption. Policymakers or policy entrepreneurs may serve as a bridge between isolated actors in the network or facilitate closed-loop relationships between allies, thereby facilitating technological diffusion in the solar and battery sectors. Essay 3 examines the impact of CCUS technologies. A CCUS supply chain captures CO2 and delivers it to a suitable location where CO2 can either be used or injected deep underground for long-term storage. While it reduces carbon emissions, it also poses risks to local communities. This essay examines the net impact of CCUS projects. By combining nationwide CCUS data with property-level transaction data between 1990 and 2021, this essay finds that residents living within 4.2 km of a CCUS facility enjoy an average price premium of 4.14% (or $9,673). Interviews with real estate agents near CCUS projects indicate their positive impact may be attributed to job creation and housing demand. Policymakers can use the information about possible price premiums to influence local perceptions of CCUS technologies and to promote their global deployment.