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As a result of the efforts to address climate change, there has been an increase in the use of renewable energy sources like solar panels and windmills.

By enabling consumers to produce their own electricity and become “prosumers,” distributed renewable energy resources are expected to shift the cost of energy transmission to traditional consumers, creating a “death spiral.” In a new study, researchers discovered that the transmission charge, in fact, does not always rise as more prosumers enter the electricity market. However, strategic prosumers encourage death spirals, which can be mitigated by imposing tax regulations on their electricity consumption.