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Consumers' preference for renewable energy in the southwest USA

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  • Mozumder, Pallab
  • Vásquez, William F.
  • Marathe, Achla

Abstract

The southwestern part of the US has abundant supply of renewable energy resources but little is known about the consumers' preferences for renewable energy in this region. This paper investigates households' willingness to pay for a renewable energy program in a southwestern state, New Mexico (NM). Using the contingent valuation method, we provide different scenarios that include provision of 10% and 20% of renewable energy supply, to elicit households' willingness to pay (WTP) for the renewable energy. We estimate the WTP for specific shares of renewable energy in the total energy mix as it is a key factor in affecting the price of the energy portfolio in the market. The survey design also allows us to check the scope sensitivity of renewable energy which can help guide the future renewable energy policy. We hope results from this study will offer useful insights to energy regulators and utility companies and help them increase the share of renewable energy supply.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 33 (2011)
Issue (Month): 6 ()
Pages: 1119-1126

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Handle: RePEc:eee:eneeco:v:33:y:2011:i:6:p:1119-1126

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Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: Renewable energy; Contingent valuation; Willingness to pay;

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References

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Cited by:
  1. Maxim Alexandru, 2013. "Methodological Considerations Regarding The Segmentation Of Household Energy Consumers," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1775-1785, July.
  2. Hooi Hooi Lean & Russell Smyth, 2012. "Are fluctuations in production of renewable energy permanent or transitory?," Development Research Unit Working Paper Series 05-12, Monash University, Department of Economics.
  3. Guo, Xiurui & Liu, Haifeng & Mao, Xianqiang & Jin, Jianjun & Chen, Dongsheng & Cheng, Shuiyuan, 2014. "Willingness to pay for renewable electricity: A contingent valuation study in Beijing, China," Energy Policy, Elsevier, vol. 68(C), pages 340-347.
  4. Arie ten Cate, 2012. "The socially optimal energy transition in a residential neighbourhood in the Netherlands," CPB Discussion Paper 222, CPB Netherlands Bureau for Economic Policy Analysis.

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