Does willingness to pay for green energy differ by source? A contingent choice experiment
01 Jan 2007-
TL;DR: In this article, the authors present the findings of a choice experiment designed to estimate consumer preferences and willingness-to-pay (WTP) for voluntary participation in green energy electricity programs and compare it to WTP for green energy from specific sources, including wind, solar, farm methane, and biomass.
Abstract: Abstract We present the findings of a choice experiment designed to estimate consumer preferences and willingness-to-pay (WTP) for voluntary participation in green energy electricity programs. Our model estimates WTP for a generic “green energy” source and compares it to WTP for green energy from specific sources, including wind, solar, farm methane, and biomass. Our results show that there exists a positive WTP for green energy electricity. Further, individuals have a preference for solar over a generic green and wind. Biomass and farm methane are found to be the least preferred sources.
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TL;DR: In this article, the authors discuss the incentives and barriers of the successful adoption of the innovative energy services in the energy market and discuss the distribution channels of the innovation, namely social influence in the consumers' social networks and advertisement in mass-media, which can be effectively used to boost the diffusion.
Abstract: The paper discusses the incentives and barriers of the successful adoption of the innovative energy services in the energy market. The literature review of the outcomes from field experiments and research surveys is enhanced by the results from a pilot study regarding willingness to pay for green energy and by an agent-based model of diffusion of innovative dynamic electricity tariffs. It was found out that to achieve large market penetration rates of the innovative energy services, the consumers must be aware of them. They must be also supported by the access to reliable information and advice to limit their confusion of choice. The perceived difficulty of adoption should be reduced to encourage consumers to get interested in the energy services. Also the distribution channels of the innovation, namely social influence in the consumers' social networks and advertisement in mass-media should be effectively used to boost the diffusion. The great attention should be put on the negative word of mouth, which may limit or even stop the diffusion of innovation.
55 citations
TL;DR: Based on a Danish survey including respondents with on-shore viewshed experience and different degrees of off-shore viewhed experiences, the authors estimated how the different types of wind power experience influence the preferences for extend wind power, biomass energy and solar energy should be developed in Denmark.
Abstract: Based on a Danish survey including respondents with on-shore viewshed experience and different degrees of off-shore viewshed experiences, it is estimated how the different types of wind power experience influence the preferences for extend wind power, biomass energy and solar energy should be developed in Denmark The preference relations indicate that on-shore viewshed experience reduces preferences for wind power with 6% and increase preferences for biomass and solar energy solutions relative to wind power with nearly 5% In contrast, off-shore viewshed experience increases preferences with 24% for wind power relative to biomass energy However, the effect is dependent on the type of off-shore wind farm experience Thus, experience with near-shore wind farms can reduce the preferences for wind power The results also suggest that some of the viewshed effects from wind turbines carry over to the relative preferences between solar energy and biomass energy
35 citations
01 Jan 2009
TL;DR: In this article, a contingent valuation (CV) method was applied to obtain at least a preliminary evaluation of the benefits that ensue from the introduction of the policy that raises the percentage of green electricity consumption from 0.2% of the total electricity supply to 7% by 2011.
Abstract: Green electricity is energy that is generated from renewable energy sources such as solar power, wind power, small-scale hydroelectric power, tidal power, and biomass power. These sources mostly do not produce pollutants and are considered environmentally friendly. However, considering the current state of technology, they are more costly. Government should take visible actions to compensate for the increased production costs. This paper attempts to apply a contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits that ensue from the introduction of the policy that raises the percentage of green electricity consumption from 0.2% of the total electricity supply to 7% by 2011. Overall, the CV survey was successful in eliciting the willingness to pay (WTP) for green electricity considering that the CV method operated within respondents' abilities to answer and the WTP estimates were statistically significant. The monthly mean WTP estimates from parametric and non-parametric methods were KRW 1681 (USD 1.8) and KRW 2072 (USD 2.2), respectively. The estimates of the annual benefits to relevant residents amounted to KRW 150.5 billion (USD 157.5 million) and KRW 185.6 billion (USD 194.2 million), respectively.
23 citations
Posted Content•
01 Jan 2014TL;DR: In this paper, a sample of 120 horticultural farms in the Province of Foggia (Apulia Region, Italy) has been surveyed by a questionnaire and the survey results demonstrate a substantial interest by farmers towards products made with innovative materials.
Abstract: In recent decades, one of the problems affecting the environment has been the increased use of plastics in agriculture, often illegally performed by open burning in the fields. The adoption of biodegradable products may represent an important opportunity to increase the environmental sustainability of agricultural sector. The goal of this study is to estimate the farmers’ willingness to pay for innovative biodegradable mulching films. A sample of 120 horticultural farms in the Province of Foggia (Apulia Region, Italy) has been surveyed by a questionnaire. The survey results demonstrate a substantial interest by farmers towards products made with innovative materials.
18 citations
TL;DR: In this article, the authors used two design elements from existing electricity markets, costly opt out of contracts and green electricity certificates, to elicit preferences for an electricity mix in an incentivized laboratory experiment.
Abstract: Green electricity defaults should steer individual choices to environmentally friendly alternatives and provide a match with individuals' preferences for an electricity mix. It is debatable whether green electricity defaults conform to this latter intention. Using two design elements from existing electricity markets, costly opt out of contracts and green electricity certificates, preferences for an electricity mix are elicited in an incentivized laboratory experiment. This study then assesses whether preferences in the absence of default options match with preferences in the presence of default options. It turns out that the alignment of default intentions and preferences depends on the price for green electricity. Low priced green electricity defaults, as currently applied in several electricity markets, do not match subjects' preferences. My findings are relevant for the design of green electricity defaults.
11 citations
References
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Book•
28 Sep 2000TL;DR: In this article, stated preference models and methods are presented for choosing a residential telecommunications bundle and a choice model for a particular set of products and services, as a way of life for individuals.
Abstract: 1. Choosing as a way of life Appendix A1. Choosing a residential telecommunications bundle 2. Introduction to stated preference models and methods 3. Choosing a choice model Appendix A3. Maximum likelihood estimation technique Appendix B3. Linear probability and generalised least squares models 4. Experimental design 5. Design of choice experiments Appendix A5. 6. Relaxing the IID assumption-introducing variants of the MNL model Appendix A6. Detailed characterisation of the nested logit model Appendix B6. Advanced discrete choice methods 7. Complex, non-IID multiple choice designs 8. Combining sources of preference data 9. Implementing SP choice behaviour projects 10. Marketing case studies 11. Transportation case studies 12. Environmental valuation case studies 13. Cross and external validity of SP models.
5,363 citations
Book•
29 Aug 2005TL;DR: The mixed logit model is introduced, a model for applied choice analysis that combines logit terms and commands with MNL, the workhorse of choice models.
Abstract: Almost without exception, everything human beings undertake involves a choice. In recent years there has been a growing interest in the development and application of quantitative statistical methods to study choices made by individuals with the purpose of gaining a better understanding both of how choices are made and of forecasting future choice responses. In this primer the authors provide an unintimidating introduction to the main techniques of choice analysis and include detail on themes such as data collection and preparation, model estimation and interpretation and the design of choice experiments. A companion website to the book provides practice data sets and software to estimate the main discrete choice models such as multinomial logit, nested logit and mixed logit. This primer will be an invaluable resource to students as well as of immense value to consultants and professionals, researchers and anyone else interested in choice analysis and modelling.
2,974 citations
TL;DR: In this paper, the authors analyze US consumers' demand for environmental attributes of deregulated residential electricity services using results from a survey designed to elicit consumers' willingness to pay for such attributes and using results of a hedonic analysis of actual price premiums charged for green electricity in several deregulated markets.
538 citations
TL;DR: In this paper, the authors argue that underestimating PV potential led to suboptimal integration measures and that specific deployment strategies for emerging economies should be developed, and that PV generation represents a growing share of power generation.
Abstract: Despite being currently under-represented in IPCC reports, PV generation represents a growing share of power generation. This Perspective argues that underestimating PV potential led to suboptimal integration measures and that specific deployment strategies for emerging economies should be developed.
530 citations
TL;DR: In this article, the authors estimate the magnitude of these external costs and benefits for the case of renewable technologies in Scotland, a country which has set particularly ambitious targets for expanding renewable energy.
481 citations