Residential and Regional Electricity Consumption in the U.S. and EU: How Much Will Higher Prices Reduce CO2 Emissions?

Results of our analysis suggest that, given the price-inelastic behavior in both the U.S. and EU regions, public policies aimed at fostering a transition to a more sustainable energy system in order to address the climate change challenge will require more than an increase in electricity retail price if they are to induce needed conservation efforts and the adoption of more efficient technologies by households.