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Consumer's willingness to pay for green electricity: A meta-analysis of the literature

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  • Sundt, Swantje
  • Rehdanz, Katrin

Abstract

The 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.

Suggested Citation

  • Sundt, Swantje & Rehdanz, Katrin, 2014. "Consumer's willingness to pay for green electricity: A meta-analysis of the literature," Kiel Working Papers 1931, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1931
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    More about this item

    Keywords

    meta-analysis; renewable energy; valuation; value transfer; willingness to pay;
    All these keywords.

    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

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