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1 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Do Energy Savings Grow on Shade Trees?
Joe Maher, Postdoctoral Fellow
Socio-Environmental Synthesis Center
WFE | May 31 , 2017
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2 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Energy Efficiency
• Major national priority and policy focus (e.g. retrofit rebates, TOU pricing, building codes)
Shade Trees
• Target peak-hour load reductions
• Rigorous policy evaluation possible with remote sensing
Lack of Evidence
• Panel data on shade loss
Motivation
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3 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
How does tree shade impact residential energy use?
• Cost-savings
• Seasonal patterns
• Tree characteristics
Can tree policies provide cost-effective energy savings?
Research Questions
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4 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Causal Identification
• Trees lower summer electricity consumption
• Trees only affect energy when shading houses
• Effects increase with canopy size
Economic Importance
• Shade trees can reduce energy use by 20%
Preview
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5 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Tree Removals (Gainesville, FL)
2007
2011
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6 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Tree Removals (Gainesville, FL)
2007
2015
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7 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Tree Permits (2000-2016)
• 1,383 residential tree removals, required for all large trees
• Issue date, property address
Energy Bills (2000-2016, GRU)
• Monthly electricity and natural gas bills, linked to address
Spatial Data
• Aerial Imagery (2001 and 2011) Canopy loss area
• Sun Position (hourly, monthly) Shade loss
• Property and building location
Gainesville Data
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8 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Fixed Effects Model
𝑦𝑖𝑡𝑚 energy consumption (kWh, therm) for house 𝑖 in year 𝑡 and month m
𝛼𝑡𝑚 fixed effects for billing period (year*month)
𝛼𝑖𝑚 fixed effects for house-month (house*month)
𝑻𝑹𝒊𝒕𝒎 indicator variable equal to one in periods after tree removal
𝜀𝑖𝑡𝑚 error term (clustered by house)
𝛽 average effect of tree removal on energy consumption
*Sample restricted to houses that are treated by end of study period
𝒚𝒊𝒕𝒎 = 𝜶𝒕𝒎 + 𝜶𝒊𝒎 + 𝛃 𝑻𝑹𝒊𝒕𝒎 + 𝜺𝒊𝒕𝒎
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9 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Notes: Each regression includes residence-by-month-of-year dummies and month-by-year dummies.
Standard errors are reported in parentheses.
(1) (2) (3) (4) (5) (6)
Variables Electricity Natural gas Combined energy
log(kWh) kWh log(therms) therms log(kWh) kWh
Tree removal effect 0.0546*** 34.35** -0.034 -0.0074 0.0468*** 35.76*
(0.018) (14.05) (0.022) (0.53) (0.018) (20.30)
R-squared 0.562 0.673 0.777 0.777 0.599 0.686
Observations 219,118 219,118 158,515 168,909 220,459 220,459
Residences 1,383 1,383 1,110 1,110 1,383 1,383
Tree Removal Effects By Fuel Type
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10 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Sun Path By Season
Winter
Spring/FallSummerSun movements shift
shade supply
Quasi-experimental
variation in shade from
tree removals
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11 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Shade on House (June 21st)
Summer Shade area
• Hours when sun and
tree align to shade
house
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12 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Shade on House (December 21st)
Define 12 shade areas
• Shade on a house in
each month
TR * Month-of-Shade
(i) Timing of removals
(ii) Timing of shade lossWinter
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13 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Electricity Effects By Month of Shade Loss
[𝑚𝑜𝑟𝑒]
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14 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Canopy Loss
2001 𝑖𝑚𝑎𝑔𝑒𝑟𝑦
𝑐𝑎𝑛𝑜𝑝𝑦 𝑙𝑜𝑠𝑠
2011 𝑖𝑚𝑎𝑔𝑒𝑟𝑦
[𝑚𝑜𝑟𝑒]
𝑏𝑢𝑖𝑙𝑑𝑖𝑛𝑔
𝑓𝑜𝑜𝑡𝑝𝑟𝑖𝑛𝑡
ΔShade = f(canopy size, location, sun path)
Shade Canopy Loss Area (m2)
(i) Timing of removals
(ii) Month of shade loss (sun path)
(iii) Amount of shade (canopy size)
Shade
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15 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Shade Effects By Canopy Size (25m2 Bins)
Large Very largeSmall
No
sh
ade
Tre
atm
ent
Eff
ect
(Per
cen
t )
Shade Canopy Loss Area (25m2 bins) [𝑚𝑜𝑟𝑒]
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16 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Identification
• Shade loss depends on sun position, tree location, canopy size.
• Trees only affect energy when shading houses
• Effects increase with canopy size
Falsification Tests
• Air-conditioning: No effects during winter, or natural gas.
• Shade: No effect in months without shade loss (any size canopy)
In Summary
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17 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Value
• Large tree = $1,600 upgrade to more efficient air-conditioner
Tree Policy
• Energy savings comparable to building codes (Kotchen 2015).
• Cheaper ‘negawatt’ than retrofit rebate programs (Maher 2016).
Some Context
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18 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
• Large trees reduce energy bills by 5%, on average, and as much as 20% for some months
• Private benefits (up to $1,500+) comparable to common energy-efficiency investments
• Policies targeting green infrastructure may provide cost effective energy savings
Conclusions
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19 NATIONAL SOCIO-ENVIRONMENTAL SYNTHESIS CENTER
Thanks.
www.josephamaher.com