Berkeley economist Meredith Fowlie explains why the drive to electrify everything in American homes is at odds with electricity rate setting practices, and explores pricing reforms to deliver rapid and equitable electrification.
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“Electrify everything” has become a mantra of decarbonization, and it’s one of the key strategies to reducing reliance on fossil fuels. Yet the process of electrifying everything from home heating to transportation creates challenges for the electricity system, which will need to grow to accommodate renewable energy and rising demand for power.    

This raises a fundamental question: How can society make costly investments to grow the supply of power, while keeping the cost of electricity low enough that electrifying everything remains an attractive proposition for all consumers?  

Meredith Fowlie, an energy and environmental economist at the University of California, Berkeley, explains why existing frameworks for setting consumer electricity prices can be at odds with the need to rapidly decarbonize. She also explores potential solutions to ensure that electrification happens rapidly, with costs and benefits that are equitably shared among households at all income levels.  

Related Content

Wholesale Electricity Justice  https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/

What Impact will the IRA Have on Consumer Energy Costs  https://kleinmanenergy.upenn.edu/podcast/what-impact-will-the-ira-have-on-consumer-energy-costs/

The Economics of Building Electrificationhttps://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/



Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Berkeley economist Meredith Fowlie explains why the drive to electrify everything in American homes is at odds with electricity rate setting practices, and explores pricing reforms to deliver rapid and equitable electrification.  ---
“Electrify everything” has become a mantra of decarbonization, and it’s one of the key strategies to reducing reliance on fossil fuels. Yet the process of electrifying everything from home heating to transportation creates challenges for the electricity system, which will need to grow to accommodate renewable energy and rising demand for power.    
This raises a fundamental question: How can society make costly investments to grow the supply of power, while keeping the cost of electricity low enough that electrifying everything remains an attractive proposition for all consumers?  
Meredith Fowlie, an energy and environmental economist at the University of California, Berkeley, explains why existing frameworks for setting consumer electricity prices can be at odds with the need to rapidly decarbonize. She also explores potential solutions to ensure that electrification happens rapidly, with costs and benefits that are equitably shared among households at all income levels.  
Related Content
Wholesale Electricity Justice  <a href="https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/">https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/</a>      
What Impact will the IRA Have on Consumer Energy Costs  <a href="https://kleinmanenergy.upenn.edu/podcast/what-impact-will-the-ira-have-on-consumer-energy-costs/">https://kleinmanenergy.upenn.edu/podcast/what-impact-will-the-ira-have-on-consumer-energy-costs/</a>
<a href="https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/">The Economics of Building Electrification</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/">https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/</a>
 
Energy Policy Now is produced by <a href="http://kleinmanenergy.upenn.edu/">The Kleinman Center for Energy Policy</a> at the University of Pennsylvania. For all things energy policy, visit <a href="http://kleinmanenergy.upenn.edu/">kleinmanenergy.upenn.edu</a>

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Berkeley economist Meredith Fowlie explains why the drive to electrify everything in American homes is at odds with electricity rate setting practices, and explores pricing reforms to deliver rapid and equitable electrification.

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