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Willingness to pay for green electricity in Japan as estimated through contingent valuation method

  • Nomura, Noboru
  • Akai, Makoto
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    Renewable energy systems, such as photovoltaic and wind-turbine energy systems, are considered to be environmentally sound from the viewpoint of carbon-dioxide emissions and resource depletion. The cost of energy supplied from renewable energy systems is higher than that of conventional fossil-fuel systems, and this hinders the wider spread of renewable-energy systems. Global environmental problems, however, are becoming more obvious. There is a movement to defray the additional cost of electricity generated in environmentally-sound processes. In this paper, we report the results of a survey using the contingent valuation method (CVM) of the willingness of Japanese households to pay more, in the form of a flat monthly surcharge, for renewable energy. The median value of willingness to pay for renewable energy by Japanese households is estimated at about 2000 yen (around 17 US$ with the exchange rate 115 yen/US$) per month per household.

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    Article provided by Elsevier in its journal Applied Energy.

    Volume (Year): 78 (2004)
    Issue (Month): 4 (August)
    Pages: 453-463

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    Handle: RePEc:eee:appene:v:78:y:2004:i:4:p:453-463
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