Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

This study analyzes whether the carbon bank policy that has been performed in Gwangju metropolitan area affects significantly reduction of residential electricity demand by applying an OLS estimation with considering heteroscedasticity. For residents who joined the carbon bank policy in 2010, we accounted period of membership for the carbon bank program, carbon point, issuance of green card, and other household characteristics as indepnedent variables. We found that the electricity charge and carbon point have inverted U-shaped relation with electricity demand. Also, we found inverted N-shaped curve between period of membership and electricity demand. Although issuance of green card was significant in mitigating electricity demand, the relative contribution was minimal. We suggested that peak load should be reference for carbon point and sort of goods and services that can be purchased by green card should be extended.