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A Dynamic Analysis of the Green Electricity Fund:Threshold Models Revisited

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Author Info

  • Nobuyuki Ito

    (Graduate School of Economics, Kobe University, Japan)

  • Kenji Takeuchi

    ()
    (Graduate School of Economics, Kobe University)

  • Takahiro Tsuge

    (Faculty of Economics, Konan University, Japan)

  • Atsuo Kishimoto

    (National Institute of Advanced Industrial Science and Technology, Japan)

Abstract

This study applies a threshold model proposed by Granovetter (1978) to analyze the dynamic diffusion process of donating behavior for renewable energy. Using data on people's willingness to donate for renewable energy under various predicted participation rates, we simulate how herd behavior spreads and the participation rate reaches the equilibrium. The participation rate at the equilibrium is estimated as 66.46% when the suggested donation is 500 yen, while it is 25.88% when the suggested amount is 1,000 yen. The influence of environmentalism and altruism is also examined, and we find that these motivations increase the participation rate 43.38% on average.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2009/0909.pdf
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Bibliographic Info

Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 0909.

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Length: 20pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:koe:wpaper:0909

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Web page: http://www.econ.kobe-u.ac.jp
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Keywords: Green electricity fund; Dynamic analysis; Contingent Valuation; Threshold model;

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