Date of Award
1-2025
Document Type
Dissertation
Degree Name
Doctor of Philosophy (PhD)
College/School
College of Science and Mathematics
Department/Program
Earth and Environmental Studies
Thesis Sponsor/Dissertation Chair/Project Chair
Pankaj Lal
Committee Member
Rashmi Jain
Committee Member
Neeraj Vedwan
Committee Member
Martín Cicowiez
Abstract
Understanding the current trajectory of New Jersey’s emissions and the existing legislation and programs implemented to help reduce emissions, it is evident that the State requires further actions to spur heightened emission reductions to reach its goals. One known impactful policy that could significantly accelerate this process is a carbon tax, which applies to emission-intensive goods. Although this policy does not currently exist in New Jersey, the State has a Societal Benefits Charge (SBC) that applies an approximate 3% charge to electricity and gas consumption on residential and commercial utility customers’ monthly energy bills, where revenues fund programs that offer benefits to society through financial assistance and energy-related programs which indirectly reduce emissions. Literature suggests that this percentage should increase annually to achieve ample emission reductions, reaching well above 5% by 2035, with revenues recycled into programs that drive renewable energy development and reduce the welfare impact on energy-burdened households. This research investigated New Jersey residents’ willingness to pay an increased SBC, with results indicating a high preference for households with higher emissions paying the annual 0.5% increase to the SBC for ten years, with revenues applying as a subsidy for renewable energy-consuming customers. Respondents are also willing to pay an additional $100 to help offset the energy burden experienced by lower-income households. We evaluated the repercussions of modifying the State’s SBC by modeling this output in an economic model. We determined the highest emission reductions occur with the highest increase in the SBC and in cases where only gas customers undergo the increase. We next evaluate the interplay between stated preference and spatial variables impacting consumer preferences for the State’s Community Solar Energy Program, which is currently funded through the SBC. We found that the State’s recently developed Solar Siting Analysis 3.0 tool can serve as a guiding principle for policymakers when identifying key community solar customers that may not be capable of installing solar. In all, this research can help policymakers make more informed decisions on modifying current State policy and programs to align with the emission reduction goals while considering those modifications' economic and social implications.
File Format
Recommended Citation
Provost, Nicole S., "New Jersey's Mitigation and Adaptation to Climate Change: An Economic Analysis of the State's Societal Benefits Charge and Community Solar Energy Program" (2025). Theses, Dissertations and Culminating Projects. 1504.
https://digitalcommons.montclair.edu/etd/1504
Included in
Natural Resources Management and Policy Commons, Oil, Gas, and Energy Commons, Taxation-State and Local Commons
