Solar rebound effects: Short and long term dynamics

Rooftop solar is increasingly promoted as a source of low-carbon household energy; however, there is a plausible concern that solar installations might influence energy consumption patterns in ways that undermine potential environmental benefits. In this study, we examine the impact of residential r...

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Main Authors: Nguyen, Luan Thanh, Ratnasiri, Shyama, Wagner, Liam, Nguyen, Dan The, Rohde, Nicholas
Format: Journal Article
Published: Elsevier 2024
Online Access:http://purl.org/au-research/grants/arc/DP160102570
http://hdl.handle.net/20.500.11937/94509
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author Nguyen, Luan Thanh
Ratnasiri, Shyama
Wagner, Liam
Nguyen, Dan The
Rohde, Nicholas
author_facet Nguyen, Luan Thanh
Ratnasiri, Shyama
Wagner, Liam
Nguyen, Dan The
Rohde, Nicholas
author_sort Nguyen, Luan Thanh
building Curtin Institutional Repository
collection Online Access
description Rooftop solar is increasingly promoted as a source of low-carbon household energy; however, there is a plausible concern that solar installations might influence energy consumption patterns in ways that undermine potential environmental benefits. In this study, we examine the impact of residential rooftop solar panels on energy usage in Vietnam. Leveraging a comprehensive and unique panel dataset, we employ a difference-in-differences identification strategy to estimate the effects of solar installation on consumption. Our models reveal that households installing solar panels reduce grid consumption (typically carbon-intensive) by approximately 3.6 %. This reduction occurs concomitantly with an increase in total consumption of around 16 %, indicating a substantial rebound effect from solar panels. Nonetheless, dynamic models suggest a diminishing trend over time for both the decline in grid usage and the rebound effect, leveling off to 1.5 % and 3.5 %, respectively, within one year of solar installation. Acknowledging the marked differences in household consumption behavior and electricity demand dynamics between developing and developed nations, our research provides valuable insights into the understanding of the solar rebound effect and its dynamics over time.
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spelling curtin-20.500.11937-945092024-04-15T05:47:38Z Solar rebound effects: Short and long term dynamics Nguyen, Luan Thanh Ratnasiri, Shyama Wagner, Liam Nguyen, Dan The Rohde, Nicholas Rooftop solar is increasingly promoted as a source of low-carbon household energy; however, there is a plausible concern that solar installations might influence energy consumption patterns in ways that undermine potential environmental benefits. In this study, we examine the impact of residential rooftop solar panels on energy usage in Vietnam. Leveraging a comprehensive and unique panel dataset, we employ a difference-in-differences identification strategy to estimate the effects of solar installation on consumption. Our models reveal that households installing solar panels reduce grid consumption (typically carbon-intensive) by approximately 3.6 %. This reduction occurs concomitantly with an increase in total consumption of around 16 %, indicating a substantial rebound effect from solar panels. Nonetheless, dynamic models suggest a diminishing trend over time for both the decline in grid usage and the rebound effect, leveling off to 1.5 % and 3.5 %, respectively, within one year of solar installation. Acknowledging the marked differences in household consumption behavior and electricity demand dynamics between developing and developed nations, our research provides valuable insights into the understanding of the solar rebound effect and its dynamics over time. 2024 Journal Article http://hdl.handle.net/20.500.11937/94509 10.1016/j.renene.2024.120051 http://purl.org/au-research/grants/arc/DP160102570 http://creativecommons.org/licenses/by/4.0/ Elsevier fulltext
spellingShingle Nguyen, Luan Thanh
Ratnasiri, Shyama
Wagner, Liam
Nguyen, Dan The
Rohde, Nicholas
Solar rebound effects: Short and long term dynamics
title Solar rebound effects: Short and long term dynamics
title_full Solar rebound effects: Short and long term dynamics
title_fullStr Solar rebound effects: Short and long term dynamics
title_full_unstemmed Solar rebound effects: Short and long term dynamics
title_short Solar rebound effects: Short and long term dynamics
title_sort solar rebound effects: short and long term dynamics
url http://purl.org/au-research/grants/arc/DP160102570
http://hdl.handle.net/20.500.11937/94509