Willingness to Pay and Political Support for a U.S. National Clean Energy Standard

Publication information:

Aldy, J. E., Kotchen, M. J., & Leiserowitz, A. A. (2012). Willingness to Pay and Political Support for a U.S. National Clean Energy Standard. Nature Climate Change, 2, 596-599. (Original work published 2012)

Abstract

In 2010 and 2011, Republicans and Democrats proposed mandating clean power generation in the electricity sector [1,2,3,]. To evaluate public support for a national clean energy standard (NCES), we conducted a nationally representative survey that included randomized treatments on the sources of eligible power generation and program costs. We find that the average American is willing to pay $162 per year in higher electricity bills (95% confidence interval: $128  $260), representing a 13% increase [4], in support of a NCES that requires 80% clean energy by 2035. Support for a NCES is lower among non‐whites, older individuals, and Republicans. We also employ our statistical model, along with census data for each state and Congressional district [5], to simulate voting behavior on a NCES by Members of Congress assuming they vote consistent with the preferences of their median voter. We estimate that Senate passage of a NCES would require an average household cost below $59 per year, while House passage would require costs below $48 per year. The results imply that an “80% by 2035” NCES could pass both chambers of Congress if it increases electricity rates less than 5% on average.