Physical Sciences and Mathematics Commons^™

Green Pricing, Mary Finley-Brook, Charles Kline

Geography and the Environment Faculty Publications

Green pricing is commonly found in energy markets and finances environmentally friendly alternatives to conventional utilities. Interested customers pay an additional fee per kilowatt-hour to purchase clean energy from hydroelectric, wind, geothermal, solar, and biomass sources. Green power markets are still new, and to ensure quality and verify delivery, many utilities apply for certification from independent organizations. Renewable energy credits (RECs) are another method to assist utility companies in financing green energy investments. Although the REC purchaser does not directly buy electricity, REC sales may subsidize renewable energy production.