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Estimating Arizona residents’ willingness to pay to invest in research and development in solar energy

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  • Mueller, Julie M.

Abstract

We estimate Arizona residents’ Willingness to Pay (WTP) to invest in a solar energy research and development fund using data obtained from a Dichotomous-Choice Contingent Valuation mail survey. We examine differences in WTP estimates using different categorizations for respondent uncertainty. We also employ both commonly used Maximum Likelihood and less frequently applied Bayesian estimation techniques. We find that respondent uncertainty has an economically significant impact on WTP estimates, while WTP estimates are robust to different estimation techniques. Our robust specification with strict uncertainty coding indicates the average Arizona household is WTP approximately $17 per month to invest in research and development in solar energy.

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  • Mueller, Julie M., 2013. "Estimating Arizona residents’ willingness to pay to invest in research and development in solar energy," Energy Policy, Elsevier, vol. 53(C), pages 462-476.
    • Handle: RePEc:eee:enepol:v:53:y:2013:i:c:p:462-476
    DOI: 10.1016/j.enpol.2012.11.012
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    1. Polis, Hilary Jacqueline & Dreyer, Stacia Jeanne & Jenkins, Lekelia Danielle, 2017. "Public Willingness to Pay and Policy Preferences for Tidal Energy Research and Development: A Study of Households in Washington State," Ecological Economics, Elsevier, vol. 136(C), pages 213-225.
    2. 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.
    3. Jin, Jianjun & Wan, Xinyu & Lin, Yongsheng & Kuang, Foyuan & Ning, Jing, 2019. "Public willingness to pay for the research and development of solar energy in Beijing, China," Energy Policy, Elsevier, vol. 134(C).
    4. Han, Myat Su & Biying, Yu & Cudjoe, Dan & Yuan, Qianqian, 2020. "Investigating willingness-to-pay to support solar energy research and development in Myanmar," Energy Policy, Elsevier, vol. 146(C).
    5. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.

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