IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v105y2014icp193-203.html
   My bibliography  Save this article

Wind farms — Where and how to place them? A choice experiment approach to measure consumer preferences for characteristics of wind farm establishments in Sweden

Author

Listed:
  • Ek, Kristina
  • Persson, Lars

Abstract

This paper explores preferences among the general public in Sweden for attributes related to the establishment of wind power farms. The method applied is a choice experiment where people are asked to choose between two hypothetical wind farms characterized by different attributes. Five attributes are included in the experiment: (i) type of landscape, (ii) type of ownership, (iii) the degree of local participation in the planning process, (iv) the choice to transfer revenue to the society in a pre-specified way, and (v) a monetary cost in terms of an additional electricity certificate fee. The data are analyzed with multinomial logit, random parameter logit, and latent class models. The results indicate that consumers in Sweden are more likely to accept the higher renewable electricity certificate fee if: (a) wind power farms in areas used for recreational purposes are substantially avoided, (b) the establishment is anchored by whole or partial ownership in the local community and, (c) the locals are involved in the planning and implementation process. Our policy simulation exercise shows that respondents are willing to pay a higher electricity fee corresponding to about 0.6 Euro cents per kWh to avoid wind farms located in the mountainous area and private ownership.

Suggested Citation

  • Ek, Kristina & Persson, Lars, 2014. "Wind farms — Where and how to place them? A choice experiment approach to measure consumer preferences for characteristics of wind farm establishments in Sweden," Ecological Economics, Elsevier, vol. 105(C), pages 193-203.
  • Handle: RePEc:eee:ecolec:v:105:y:2014:i:c:p:193-203
    DOI: 10.1016/j.ecolecon.2014.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800914001815
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ek, Kristina & Söderholm, Patrik, 2008. "Norms and economic motivation in the Swedish green electricity market," Ecological Economics, Elsevier, vol. 68(1-2), pages 169-182, December.
    2. Chiou, Lesley & Walker, Joan L., 2007. "Masking identification of discrete choice models under simulation methods," Journal of Econometrics, Elsevier, vol. 141(2), pages 683-703, December.
    3. Wolsink, Maarten, 2007. "Wind power implementation: The nature of public attitudes: Equity and fairness instead of 'backyard motives'," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(6), pages 1188-1207, August.
    4. Dimitropoulos, Alexandros & Kontoleon, Andreas, 2009. "Assessing the determinants of local acceptability of wind-farm investment: A choice experiment in the Greek Aegean Islands," Energy Policy, Elsevier, vol. 37(5), pages 1842-1854, May.
    5. Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
    6. William H. Greene & David A. Hensher, 2013. "Revealing additional dimensions of preference heterogeneity in a latent class mixed multinomial logit model," Applied Economics, Taylor & Francis Journals, vol. 45(14), pages 1897-1902, May.
    7. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Working Papers 11-04, University of Delaware, Department of Economics.
    8. Toke, David & Breukers, Sylvia & Wolsink, Maarten, 2008. "Wind power deployment outcomes: How can we account for the differences?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1129-1147, May.
    9. 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.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    11. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
    12. Swofford, Jeffrey & Slattery, Michael, 2010. "Public attitudes of wind energy in Texas: Local communities in close proximity to wind farms and their effect on decision-making," Energy Policy, Elsevier, vol. 38(5), pages 2508-2519, May.
    13. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    14. Krohn, Søren & Damborg, Steffen, 1999. "On public attitudes towards wind power," Renewable Energy, Elsevier, vol. 16(1), pages 954-960.
    15. 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.
    16. Alvarez-Farizo, Begona & Hanley, Nick, 2002. "Using conjoint analysis to quantify public preferences over the environmental impacts of wind farms. An example from Spain," Energy Policy, Elsevier, vol. 30(2), pages 107-116, January.
    17. Andrew D. Krueger & George R. Parsons & Jeremy Firestone, 2011. "Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline," Land Economics, University of Wisconsin Press, vol. 87(2), pages 268-283.
    18. Söderholm, Patrik & Ek, Kristina & Pettersson, Maria, 2007. "Wind power development in Sweden: Global policies and local obstacles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 365-400, April.
    19. Jones, Christopher R. & Richard Eiser, J., 2010. "Understanding 'local' opposition to wind development in the UK: How big is a backyard?," Energy Policy, Elsevier, vol. 38(6), pages 3106-3117, June.
    20. Hensher, David A. & Stopher, Peter R. & Louviere, Jordan J., 2001. "An exploratory analysis of the effect of numbers of choice sets in designed choice experiments: an airline choice application," Journal of Air Transport Management, Elsevier, vol. 7(6), pages 373-379.
    21. Meyerhoff, Jürgen & Ohl, Cornelia & Hartje, Volkmar, 2010. "Landscape externalities from onshore wind power," Energy Policy, Elsevier, vol. 38(1), pages 82-92, January.
    22. Ladenburg, Jacob & Dubgaard, Alex, 2007. "Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark," Energy Policy, Elsevier, vol. 35(8), pages 4059-4071, August.
    23. Jones, Christopher R. & Eiser, J. Richard, 2009. "Identifying predictors of attitudes towards local onshore wind development with reference to an English case study," Energy Policy, Elsevier, vol. 37(11), pages 4604-4614, November.
    Full references (including those not matched with items on IDEAS)

    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. Langer, Katharina & Decker, Thomas & Roosen, Jutta & Menrad, Klaus, 2016. "A qualitative analysis to understand the acceptance of wind energy in Bavaria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 248-259.
    2. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    3. Strazzera, Elisabetta & Mura, Marina & Contu, Davide, 2012. "Combining choice experiments with psychometric scales to assess the social acceptability of wind energy projects: A latent class approach," Energy Policy, Elsevier, vol. 48(C), pages 334-347.
    4. Caporale, Diana & De Lucia, Caterina, 2015. "Social acceptance of on-shore wind energy in Apulia Region (Southern Italy)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1378-1390.
    5. Boyle, Kevin J. & Boatwright, Jessica & Brahma, Sreeya & Xu, Weibin, 2019. "NIMBY, not, in siting community wind farms," Resource and Energy Economics, Elsevier, vol. 57(C), pages 85-100.
    6. van Rensburg, Thomas M. & Kelley, Hugh & Jeserich, Nadine, 2015. "What influences the probability of wind farm planning approval: Evidence from Ireland," Ecological Economics, Elsevier, vol. 111(C), pages 12-22.
    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. Ladenburg, Jacob & Möller, Bernd, 2011. "Attitude and acceptance of offshore wind farms—The influence of travel time and wind farm attributes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4223-4235.
    9. Ladenburg, Jacob & Termansen, Mette & Hasler, Berit, 2013. "Assessing acceptability of two onshore wind power development schemes: A test of viewshed effects and the cumulative effects of wind turbines," Energy, Elsevier, vol. 54(C), pages 45-54.
    10. Dimitropoulos, Alexandros & Kontoleon, Andreas, 2009. "Assessing the determinants of local acceptability of wind-farm investment: A choice experiment in the Greek Aegean Islands," Energy Policy, Elsevier, vol. 37(5), pages 1842-1854, May.
    11. Ladenburg, Jacob & Dahlgaard, Jens-Olav, 2012. "Attitudes, threshold levels and cumulative effects of the daily wind-turbine encounters," Applied Energy, Elsevier, vol. 98(C), pages 40-46.
    12. Janhunen, Sari & Hujala, Maija & Pätäri, Satu, 2014. "Owners of second homes, locals and their attitudes towards future rural wind farm," Energy Policy, Elsevier, vol. 73(C), pages 450-460.
    13. Soliño, Mario & Farizo, Begoña A. & Vázquez, María X. & Prada, Albino, 2012. "Generating electricity with forest biomass: Consistency and payment timeframe effects in choice experiments," Energy Policy, Elsevier, vol. 41(C), pages 798-806.
    14. Ladenburg, Jacob & Lutzeyer, Sanja, 2012. "The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6793-6802.
    15. Vecchiato, Daniel & Tempesta, Tiziano, 2015. "Public preferences for electricity contracts including renewable energy: A marketing analysis with choice experiments," Energy, Elsevier, vol. 88(C), pages 168-179.
    16. Lienhoop, Nele, 2018. "Acceptance of wind energy and the role of financial and procedural participation: An investigation with focus groups and choice experiments," Energy Policy, Elsevier, vol. 118(C), pages 97-105.
    17. Kontogianni, A. & Tourkolias, Ch. & Skourtos, M. & Damigos, D., 2014. "Planning globally, protesting locally: Patterns in community perceptions towards the installation of wind farms," Renewable Energy, Elsevier, vol. 66(C), pages 170-177.
    18. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    19. Slattery, Michael C. & Johnson, Becky L. & Swofford, Jeffrey A. & Pasqualetti, Martin J., 2012. "The predominance of economic development in the support for large-scale wind farms in the U.S. Great Plains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3690-3701.
    20. Langer, Katharina & Decker, Thomas & Menrad, Klaus, 2017. "Public participation in wind energy projects located in Germany: Which form of participation is the key to acceptance?," Renewable Energy, Elsevier, vol. 112(C), pages 63-73.

    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:eee:ecolec:v:105:y:2014:i:c:p:193-203. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.