Consumer’s Willingness to Pay for Green Electricity: A Meta-Analysis of the Literature
AbstractThe number of studies published focusing on people’s preferences for green electricity has increased steadily, making it more and more difficult to identify key explanatory factors that determine people’s willingness-to-pay (WTP). Based on results of a meta-regression our results indicate e.g. that hydropower is the least preferred technology. Variables such as information on the type of power plant that will be replaced by renewables, which are often omitted from primary valuation studies, are important in explaining differences in values as well. When assessing the predictive power of our results for out-of-sample value transfers we find median errors of approximately 30%, depending on model specification
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1931.
Length: 23 pages
Date of creation: Jun 2014
Date of revision:
meta-analysis; renewable energy; valuation; value transfer; willingness to pay;
Find related papers by JEL classification:
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-07-28 (All new papers)
- NEP-DCM-2014-07-28 (Discrete Choice Models)
- NEP-ENE-2014-07-28 (Energy Economics)
- NEP-ENV-2014-07-28 (Environmental Economics)
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