The social welfare implications of electrification in the U.S. residential energy market

Alexander Hill

Journal of Environmental Economics and Management, 2025, vol. 131, issue C

Abstract: Concerns over global climate change have led to support for household electrification to reduce CO2 emissions. However, due to the cost of mandating household electrification and the lack of an emissions-free grid, the social net benefit of this policy is unknown. Using a discrete choice empirical strategy, this paper estimates the tradeoff between household willingness to pay to avoid an electrification mandate and its environmental benefits in residential space and water heating markets. Compared with the counterfactual, the mandate has a net social cost of $47 billion annually from 2025 to 2050, largely from households in the Northeast and North Midwest.

Keywords: Q54; L51; Q48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:131:y:2025:i:c:s0095069625000208

DOI: 10.1016/j.jeem.2025.103136

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