IDEAS home Printed from https://ideas.repec.org/a/aes/amfeco/v36y2014i16p594.html
   My bibliography  Save this article

Lithuanian Consumer`s Willingness to Pay and Feed-in Prices for Renewable Electricity

Author

Listed:
  • Dalia Streimikiene

    (Lithuanian Energy Institute, Breslaujos)

  • Asta Mikalauskiene

    (Lithuanian Energy Institute, Breslaujos)

Abstract

The paper aims to assess the willingness to pay (WTP) for renewable electricity of Lithuanian households and to compare WTP of Lithuanian consumers with support provided for renewable by Lithuanian government in terms of Feed-in prices. The paper reviews the situation of renewable electricity generation and consumption in Lithuania and presents the results of empirical study aiming at assessment of Lithuanian household’s willingness to pay for electricity produced from renewables. The results of study indicated that the WTP of Lithuanian households is significantly lower than subsides for renewable electricity provided in the form of Feed-in prices in Lithuania. Therefore feed-in prices need to be revising taking into account WTP of Lithuanian consumers.

Suggested Citation

  • Dalia Streimikiene & Asta Mikalauskiene, 2014. "Lithuanian Consumer`s Willingness to Pay and Feed-in Prices for Renewable Electricity," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(36), pages 594-594, May.
    • Handle: RePEc:aes:amfeco:v:36:y:2014:i:16:p:594
    as

    Download full text from publisher

    File URL: http://www.amfiteatrueconomic.ro/temp/Article_1294.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scarpa, Riccardo & Willis, Ken, 2010. "Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies," Energy Economics, Elsevier, vol. 32(1), pages 129-136, January.
    2. Salmela, Suvi & Varho, Vilja, 2006. "Consumers in the green electricity market in Finland," Energy Policy, Elsevier, vol. 34(18), pages 3669-3683, December.
    3. Zorić, Jelena & Hrovatin, Nevenka, 2012. "Household willingness to pay for green electricity in Slovenia," Energy Policy, Elsevier, vol. 47(C), pages 180-187.
    4. Longo, Alberto & Markandya, Anil & Petrucci, Marta, 2008. "The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy," Ecological Economics, Elsevier, vol. 67(1), pages 140-152, August.
    5. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
    6. Camelia I. Lungu & Cornelia Dascalu & Chirata Caraini & Erica C. Balea, 2014. "Econometric Approach of the Scenarios regarding the Impact of the Consumer’s Empowerment and Companies’ Responsibility for Environment Sustainability on the Electricity Market Performance," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 187-187, February.
    7. Ek, Kristina, 2005. "Public and private attitudes towards "green" electricity: the case of Swedish wind power," Energy Policy, Elsevier, vol. 33(13), pages 1677-1689, September.
    8. Hansla, Andre & Gamble, Amelie & Juliusson, Asgeir & Garling, Tommy, 2008. "Psychological determinants of attitude towards and willingness to pay for green electricity," Energy Policy, Elsevier, vol. 36(2), pages 768-774, February.
    9. Maria-Ana Georgescu & Emilia Herman, 2014. "Social Corporate Responsibility regarding Household Consumer Satisfaction with the Electric Power Supply Services," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 123-123, February.
    10. Elcin Akcura, 2013. "Mandatory versus voluntary payment for green electricity," Working Papers 161, European Bank for Reconstruction and Development, Office of the Chief Economist.
    11. Borchers, Allison M. & Duke, Joshua M. & Parsons, George R., 2007. "Does willingness to pay for green energy differ by source?," Energy Policy, Elsevier, vol. 35(6), pages 3327-3334, June.
    12. Akcura, Elcin, 2015. "Mandatory versus voluntary payment for green electricity," Ecological Economics, Elsevier, vol. 116(C), pages 84-94.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dastan Bamwesigye, 2023. "Willingness to Pay for Alternative Energies in Uganda: Energy Needs and Policy Instruments towards Zero Deforestation 2030 and Climate Change," Energies, MDPI, vol. 16(2), pages 1-21, January.
    2. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    3. Pelau, Corina & Pop, Nicolae Al., 2018. "Implications for the energy policy derived from the relation between the cultural dimensions of Hofstede's model and the consumption of renewable energies," Energy Policy, Elsevier, vol. 118(C), pages 160-168.
    4. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    2. Elcin Akcura, 2013. "Mandatory versus voluntary payment for green electricity," Working Papers 161, European Bank for Reconstruction and Development, Office of the Chief Economist.
    3. Elcin Akcura, 2013. "Mandatory vs voluntary Payment for Green Electricity," Cambridge Working Papers in Economics 1339, Faculty of Economics, University of Cambridge.
    4. Menegaki, Angeliki N., 2012. "A social marketing mix for renewable energy in Europe based on consumer stated preference surveys," Renewable Energy, Elsevier, vol. 39(1), pages 30-39.
    5. Oerlemans, Leon A.G. & Chan, Kai-Ying & Volschenk, Jako, 2016. "Willingness to pay for green electricity: A review of the contingent valuation literature and its sources of error," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 875-885.
    6. Herbes, Carsten & Friege, Christian & Baldo, Davide & Mueller, Kai-Markus, 2015. "Willingness to pay lip service? Applying a neuroscience-based method to WTP for green electricity," Energy Policy, Elsevier, vol. 87(C), pages 562-572.
    7. Gracia, Azucena & Barreiro-Hurlé, Jesús & Pérez y Pérez, Luis, 2012. "Can renewable energy be financed with higher electricity prices? Evidence from a Spanish region," Energy Policy, Elsevier, vol. 50(C), pages 784-794.
    8. Balezentis, Tomas & Streimikiene, Dalia & Mikalauskas, Ignas & Shen, Zhiyang, 2021. "Towards carbon free economy and electricity: The puzzle of energy costs, sustainability and security based on willingness to pay," Energy, Elsevier, vol. 214(C).
    9. Dagher, Leila & Harajli, Hassan, 2015. "Willingness to pay for green power in an unreliable electricity sector: Part 1. The case of the Lebanese residential sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1634-1642.
    10. Soon, Jan-Jan & Ahmad, Siti-Aznor, 2015. "Willingly or grudgingly? A meta-analysis on the willingness-to-pay for renewable energy use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 877-887.
    11. Cardella, Eric & Ewing, Bradley T. & Williams, Ryan B., 2017. "Price volatility and residential electricity decisions: Experimental evidence on the convergence of energy generating source," Energy Economics, Elsevier, vol. 62(C), pages 428-437.
    12. Claudy, Marius C. & Michelsen, Claus & O'Driscoll, Aidan, 2011. "The diffusion of microgeneration technologies - assessing the influence of perceived product characteristics on home owners' willingness to pay," Energy Policy, Elsevier, vol. 39(3), pages 1459-1469, March.
    13. 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.
    14. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    15. Carsten Herbes & Lorenz Braun & Dennis Rube, 2016. "Pricing of Biomethane Products Targeted at Private Households in Germany—Product Attributes and Providers’ Pricing Strategies," Energies, MDPI, vol. 9(4), pages 1-15, March.
    16. Heng, Yan & Lu, Chao-Lin & Yu, Luqing & Gao, Zhifeng, 2020. "The heterogeneous preferences for solar energy policies among US households," Energy Policy, Elsevier, vol. 137(C).
    17. Qingbin Wang & Laurel Valchuis & Ethan Thompson & David Conner & Robert Parsons, 2019. "Consumer Support and Willingness to Pay for Electricity from Solar, Wind, and Cow Manure in the United States: Evidence from a Survey in Vermont," Energies, MDPI, vol. 12(23), pages 1-13, November.
    18. Damigos, D. & Tourkolias, C. & Diakoulaki, D., 2009. "Households' willingness to pay for safeguarding security of natural gas supply in electricity generation," Energy Policy, Elsevier, vol. 37(5), pages 2008-2017, May.
    19. Yoo, Seung-Hoon & Kwak, So-Yoon, 2009. "Willingness to pay for green electricity in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 37(12), pages 5408-5416, December.
    20. Kontogianni, Areti & Tourkolias, Christos & Skourtos, Michalis, 2013. "Renewables portfolio, individual preferences and social values towards RES technologies," Energy Policy, Elsevier, vol. 55(C), pages 467-476.

    More about this item

    Keywords

    renewable electricity; assessment of willingness to pay (WTP); feed-in tariffs;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aes:amfeco:v:36:y:2014:i:16:p:594. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentin Dumitru (email available below). General contact details of provider: https://edirc.repec.org/data/aseeero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.