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The influence of home-site factors on residents' willingness to pay: An application for power generation from scrubland in Galicia, Spain

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  • Soliño, Mario
  • Farizo, Begoña A.
  • Campos, Pablo

Abstract

The main objective of this paper is to measure how much home-site factors can help to explain the individual WTP for an environmental improvement in power generation in Galicia, Spain. The results show that home-site variables such as a dispersed population, local community income, population growth and coastal/inland emplacements have significant effects on the residents' WTP. Individual and home-site models are compared using goodness-of-fit measures, and implications for forestry resources management and energy planning are discussed. The results favor to take into account the home-site variables into the WTP function. Moreover, a different structure of preferences for coastal and inland inhabitants is identified. A cross-validity analysis shows that some home-site coefficients are common to both sub-samples, but the scale parameters are not homogenous. This analysis could be useful to inform and support the public energy policy when designing incentives that promote the electric use of biomass.

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  • Soliño, Mario & Farizo, Begoña A. & Campos, Pablo, 2009. "The influence of home-site factors on residents' willingness to pay: An application for power generation from scrubland in Galicia, Spain," Energy Policy, Elsevier, vol. 37(10), pages 4055-4065, October.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:4055-4065
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    4. Soliño, Mario & Farizo, Begoña A. & Vázquez, María X. & Prada, Albino, 2012. "Generating electricity with forest biomass: Consistency and payment timeframe effects in choice experiments," Energy Policy, Elsevier, vol. 41(C), pages 798-806.
    5. Soon, Jan-Jan & Ahmad, Siti-Aznor, 2015. "Willingly or grudgingly? A meta-analysis on the willingness-to-pay for renewable energy use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 877-887.
    6. Gianluca Grilli, 2017. "Renewable energy and willingness to pay: Evidences from a meta-analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 253-271.
    7. Ugarte Lucas, Paula & Gamborg, Christian & Lund, Thomas Bøker, 2022. "Sustainability concerns are key to understanding public attitudes toward woody biomass for energy: A survey of Danish citizens," Renewable Energy, Elsevier, vol. 194(C), pages 181-194.
    8. Aleksandra Sus & Rafał Trzaska & Maciej Wilczyński & Joanna Hołub-Iwan, 2023. "Strategies of Energy Suppliers and Consumer Awareness in Green Energy Optics," Energies, MDPI, vol. 16(4), pages 1-23, February.
    9. Ma, Chunbo & Rogers, Abbie A. & Kragt, Marit E. & Zhang, Fan & Polyakov, Maksym & Gibson, Fiona & Chalak, Morteza & Pandit, Ram & Tapsuwan, Sorada, 2015. "Consumers’ willingness to pay for renewable energy: A meta-regression analysis," Resource and Energy Economics, Elsevier, vol. 42(C), pages 93-109.
    10. Soliño, Mario & Prada, Albino & Vázquez, María X., 2010. "Designing a forest-energy policy to reduce forest fires in Galicia (Spain): A contingent valuation application," Journal of Forest Economics, Elsevier, vol. 16(3), pages 217-233, August.
    11. Chan, Kai-Ying & Oerlemans, Leon A.G. & Volschenk, Jako, 2015. "On the construct validity of measures of willingness to pay for green electricity: Evidence from a South African case," Applied Energy, Elsevier, vol. 160(C), pages 321-328.
    12. Lígia M. Costa Pinto & Sara Sousa & Marieta Valente, 2021. "Explaining the Social Acceptance of Renewables through Location-Related Factors: An Application to the Portuguese Case," IJERPH, MDPI, vol. 18(2), pages 1-13, January.
    13. María Bastida & Alberto Vaquero García & Miguel Á. Vázquez Taín, 2021. "A New Life for Forest Resources: The Commons as a Driver for Economic Sustainable Development—A Case Study from Galicia," Land, MDPI, vol. 10(2), pages 1-17, January.
    14. Oerlemans, Leon A.G. & Chan, Kai-Ying & Volschenk, Jako, 2016. "Willingness to pay for green electricity: A review of the contingent valuation literature and its sources of error," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 875-885.
    15. Raquel Fernández-González & Félix Puime Guillén & Otilia Manta & Simona Andreea Apostu & Valentina Vasile, 2022. "Forest Management Communities’ Participation in Bioenergy Production Initiatives: A Case Study for Galicia (Spain)," Energies, MDPI, vol. 15(19), pages 1-17, October.
    16. Begoña A. Farizo & John Joyce & Mario Soliño, 2014. "Dealing with Heterogeneous Preferences Using Multilevel Mixed Models," Land Economics, University of Wisconsin Press, vol. 90(1), pages 181-198.
    17. Martinez-Paz, José M. & Almansa-Sáez, Carmen & Perni-Llorente, Ángel, 2011. "Energía eléctrica procedente de fuentes renovables: percepción social y disposición al pago/Willingness to pay for electricity from renewable sources," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 539-560, Agosto.
    18. Mario Soliño & Begoña A Farizo, 2014. "Personal Traits Underlying Environmental Preferences: A Discrete Choice Experiment," PLOS ONE, Public Library of Science, vol. 9(2), pages 1-7, February.

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