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Wind, hydro or mixed renewable energy source: Preference for electricity products when the share of renewable energy increases

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  • Yang, Yingkui
  • Solgaard, Hans Stubbe
  • Haider, Wolfgang

Abstract

While the share of renewable energy, especially wind power, increases in the energy mix, the risk of temporary energy shortage increases as well. Thus, it is important to understand consumers' preference for the renewable energy towards the continuous growing renewable energy society. We use a discrete choice experiment to infer consumers' preferences when the share of renewable energy increases. The study results indicate that consumers are generally willing to pay extra for an increasing share of renewable energy, but the renewable energy should come from a mixture of renewable energy sources. We also found that consumers prefer to trade with their current supplier rather than another well-known supplier. This study contributes to the energy portfolio theories and the theory of energy diversification in a consumer perspective. The managerial implications of this study are also discussed.

Suggested Citation

  • Yang, Yingkui & Solgaard, Hans Stubbe & Haider, Wolfgang, 2016. "Wind, hydro or mixed renewable energy source: Preference for electricity products when the share of renewable energy increases," Energy Policy, Elsevier, vol. 97(C), pages 521-531.
    • Handle: RePEc:eee:enepol:v:97:y:2016:i:c:p:521-531
    DOI: 10.1016/j.enpol.2016.07.030
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