Nicola Pavanini (Tilburg University) on "Welfare and redistribution in residential electricity markets with solar power"

Speaker:  Nicola Pavanini - Tilburg University
  Wednesday, June 12, 2019 at 12:00 PM Polo Santa Marta, Via Cantarane 24, Sala Vaona
An increasing number of households installing solar panels raises two challenges for regulators: network
financing and vertical equity. We propose alternative tariff designs for policymakers to incentivize
solar panel adoptions and guarantee the sustainability of network costs, while trading off efficiency, equity,
and welfare motives. We estimate structural models of energy demand and solar panel adoption,
using a unique matched dataset on energy consumption, income, wealth, solar panel installations, and
building characteristics for 135,000 households in the Canton of Bern (Switzerland) in 2008-2013. Our
counterfactuals recommend the optimal solar panel installation cost subsidies, as well as variable and
fixed tariffs, to achieve various solar energy targets.

Joint work with Fabian Feger and Doina Radulescu

Programme Director
Luigi Grossi

Publication date
January 21, 2019