Technology advancement is driving electric vehicle adoption.

Electric vehicle sales have been growing rapidly in the United States and around the world. This study explores the drivers of demand for electric vehicles, examining whether this trend is primarily a result of technology improvements or changes in consumer preferences for the technology over time. We conduct a discrete choice experiment of new vehicle consumers in the United States, weighted to be representative of the population. Results suggest that improved technology has been the stronger force. Estimates of consumer willingness to pay for vehicle attributes show that when consumers compare a gasoline vehicle to its battery electric vehicle (BEV) counterpart, the improved operating cost, acceleration, and fast-charging capabilities of today's BEVs mostly or entirely compensate for their perceived disadvantages, particularly for longer-range BEVs. Moreover, forecasted improvements of BEV range and price suggest that consumer valuation of many BEVs is expected to equal or exceed their gasoline counterparts by 2030. A suggestive market-wide simulation extrapolation indicates that if every gasoline vehicle had a BEV option in 2030, the majority of new car and near-majority of new sport-utility vehicle choice shares could be electric in that year due to projected technology improvements alone.

Field experimental evidence shows that self-interest attracts more sunlight.

This study examines how messaging approaches in a prosocial intervention can influence not only the effectiveness of the intervention but also, contagion afterward. Our investigation focuses on leveraging two motivations for solar adoption: self-interest and prosocial. Using data from a natural field experiment in 29 municipalities containing 684,000 people, we find that self-interest messaging is twice as effective in inducing solar adoption both during and after the intervention. Adoptions under self-interest messaging have 10% higher net present value, but prosocial messaging increases the likelihood that adopters recommend solar to their friends and neighbors. Income moderates the effectiveness of self-interest messaging, performing much better in high-income communities than low- and moderate-income communities. There was no significant difference across income groups for prosocial messaging. These results provide guidance to policy makers aiming to encourage prosocial behavior across all income groups.

Linking Housing Policy, Housing Typology, and Residential Energy Demand in the United States.

Residential energy demand can be greatly influenced by the types of housing structures that households live in, but few studies have assessed changes in the composition of housing stocks as a strategy for reducing residential energy demand or greenhouse gas (GHG) emissions. In this paper we examine the effects of three sequenced federal policies on the share of new housing construction by type in the U.S., and estimate the cumulative influence of those policies on the composition of the 2015 housing stock. In a counterfactual 2015 housing stock without the policy effects, 14 million housing units exist as multifamily rather than single-family, equal to 14.1% of urban housing. Accompanied by floor area reductions of 0-50%, the switch from single- to multifamily housing reduces energy demand by 27-47% per household, and total urban residential energy by 4.6-8.3%. This paper is the first to link federal policies to housing outcomes by type and estimate associated effects on residential energy and GHG emissions. Removing policy barriers and disincentives to multifamily housing can unlock a large potential for reducing residential energy demand and GHG emissions in the coming decades.

Long-Run Environmental and Economic Impacts of Electrifying Waterborne Shipping in the United States.

Emissions from ships in and surrounding ports are a major contributor to urban air pollution in coastal and inland riverside cities. Connecting docked ships to onshore grid electricity and using electric tugboats are two approaches to reduce pollution damages. This paper examines the effects of the widespread adoption of electrification in waterborne shipping. Our study is novel in the use of an equilibrium model of the U.S. energy system to capture the effects of increasing electricity generation to electrify waterborne shipping both with and without a carbon pricing policy. We examine three scenarios, Electrifying in ports, Electrifying in Emission Control Areas, and Electrifying all U.S. vessel fuels, as well as an electrification scenario under carbon pricing, allowing electrification of waterborne shipping to contribute to deeper decarbonization. We find that electrification results in slight carbon emission reductions in early projected years and that the reductions increase as the electric grid evolves out to 2050. We also show that an ambitious scenario of electrifying all U.S. vessel fuels results in up to 65% net reduction in air pollution as we approach 2050, even after accounting for the pollution increase from grid generation. Our baseline results indicate that intensive waterborne shipping electrification can provide considerable social benefits that exceed the costs, especially as the electric grid decarbonizes.

The climate and health benefits from intensive building energy efficiency improvements.

Intensive building energy efficiency improvements can reduce emissions from energy use, improving outdoor air quality and human health, but may also affect ventilation and indoor air quality. This study examines the effects of highly ambitious, yet feasible, building energy efficiency upgrades in the United States. Our energy efficiency scenarios, derived from the literature, lead to a 6 to 11% reduction in carbon dioxide emissions and 18 to 25% reductions in particulate matter (PM2.5) emissions in 2050. These reductions are complementary with a carbon pricing policy on electricity. However, our results also point to the importance of mitigating indoor PM2.5 emissions, improving PM2.5 filtration, and evaluating ventilation-related policies. Even with no further ventilation improvements, we estimate that intensive energy efficiency scenarios could prevent 1800 to 3600 premature deaths per year across the United States in 2050. With further investments in indoor air quality, this can rise to 2900 to 5100.

The Short-run and Long-run Effects of Covid-19 on Energy and the Environment.

Kenneth Gillingham is an Associate Professor of Economics at Yale University, with a primary appointment in the School of Forestry & Environmental Studies. In 2015 to 2016, he served as the Senior Economist for Energy and the Environment at the White House Council of Economic Advisers. His research interests cover energy and environmental economics, industrial organization, technological change, and energy modeling. He held a Fulbright to New Zealand and has worked for Resources for the Future and Pacific Northwest National Laboratory. He received a PhD and two MS degrees from Stanford University and an AB from Dartmouth College. Christopher Knittel is the George P. Shultz Professor of Applied Economics in the Sloan School of Management at the Massachusetts Institute of Technology (MIT). He is also the Director of MIT's Center for Energy and Environmental Policy Research, which serves as the hub for social science research on energy and the environmental since the late 1970s. Professor Knittel is also the Co-Director of the MIT Energy Initiative's Electric Power System Low Carbon Energy Center and a co-director of The E2e Project, a research initiative between MIT, UC Berkeley, and the University of Chicago to undertake rigorous evaluation of energy efficiency investments. Jing Li holds the inaugural William Barton Rogers Career Development Chair of Energy Economics at the MIT Sloan School of Management. From 2017-2018, Jing Li was a Postdoctoral Associate of the MIT Energy Initiative. Jing's research interests lie in energy economics and industrial organization, focusing on development and adoption of new technologies. Her most recent work examines compatibility and investment in electric vehicle recharging networks in the United States and cost pass-through in the E85 retail market. Jing received double BSc degrees in Mathematics and Economics from MIT in 2011 and her PhD in Economics from Harvard in 2017. Marten Ovaere is a Postdoctoral Associate in the School of Forestry & Environmental Studies of Yale University. His research interests lie in energy and environmental economics, with a focus on electricity markets, carbon pricing, and renewable energy. Marten holds a MSc in Economics, a MSc in Energy Engineering, and a PhD in Economics from KU Leuven. Mar Reguant is an Associate Professor in Economics at Northwestern University. She received her PhD from MIT in 2011. Her research uses high-frequency data to study the impact of auction design and environmental regulation on electricity markets and energy-intensive industries. She has numerous awards, including a Sloan Research Fellowship in 2016, the Sabadell Prize for Economic Research in 2017, a Presidential Early Career Award for Scientists and Engineers award in 2019, and the European Association of Environmental and Resource Economists Award for Researchers in Environmental Economics under the Age of Forty in 2019.