IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v137y2020ics0301421519307736.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

The heterogeneous preferences for solar energy policies among US households

Author

Listed:
  • Heng, Yan
  • Lu, Chao-Lin
  • Yu, Luqing
  • Gao, Zhifeng

Abstract

Solar energy provides several significant advantages, such as reduced CO2 emissions, more energy supply diversification and regional/national energy independence. Due to the reduced installation cost and the rapid advances in solar energy technology, the installed capacity of solar power has been increasing over time in the United States. Nevertheless, solar energy capacity and policies differ significantly across the US states. Determining the preferences for solar energy policies is critical for future solar energy development. In this study, we used stated preference methods to elicit residents' preferences for solar energy and determine the impact of policies on consumers’ support of solar energy. Results show that US residents have a heterogeneous preferences for different types of solar energy policies. In general, financial support is more effective in promoting solar energy. Compared to most demographics, attitude toward climate change, barriers, and motives for solar energy adoption has a greater impact on preferences for solar energy policies. Moreover, our results confirm the necessity of government subsidies to promote solar energy. The findings could help facilitate the development of solar policy instruments that more effectively encourage the adoption of solar and other sustainable energies.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519307736
    DOI: 10.1016/j.enpol.2019.111187
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421519307736
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.111187?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. 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. Zhifeng Gao & Lisa O. House & Xiaohua Yu, 2010. "Using choice experiments to estimate consumer valuation: the role of experimental design and attribute information loads," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 555-565, November.
    3. McFadden, Daniel, 1980. "Econometric Models for Probabilistic Choice among Products," The Journal of Business, University of Chicago Press, vol. 53(3), pages 13-29, July.
    4. Yoo, James & Ready, Richard C., 2014. "Preference heterogeneity for renewable energy technology," Energy Economics, Elsevier, vol. 42(C), pages 101-114.
    5. Berry, Trent & Jaccard, Mark, 2001. "The renewable portfolio standard:: design considerations and an implementation survey," Energy Policy, Elsevier, vol. 29(4), pages 263-277, March.
    6. 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.
    7. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
    8. 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.
    9. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    10. Mickael Bech & Trine Kjaer & Jørgen Lauridsen, 2011. "Does the number of choice sets matter? Results from a web survey applying a discrete choice experiment," Health Economics, John Wiley & Sons, Ltd., vol. 20(3), pages 273-286, March.
    11. Batley, S. L. & Colbourne, D. & Fleming, P. D. & Urwin, P., 2001. "Citizen versus consumer: challenges in the UK green power market," Energy Policy, Elsevier, vol. 29(6), pages 479-487, May.
    12. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    13. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, vol. 56(C), pages 644-652.
    14. Ståle Navrud & Kirsten Grønvik Bråten, 2007. "Consumers' Preferences for Green and Brown Electricity : a Choice Modelling Approach," Revue d'économie politique, Dalloz, vol. 117(5), pages 795-811.
    15. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    16. Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
    17. DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
    18. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    19. Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
    20. Nomura, Noboru & Akai, Makoto, 2004. "Willingness to pay for green electricity in Japan as estimated through contingent valuation method," Applied Energy, Elsevier, vol. 78(4), pages 453-463, August.
    21. 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.
    22. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    23. 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.
    24. Cicia, Gianni & Cembalo, Luigi & Del Giudice, Teresa & Palladino, Andrea, 2012. "Fossil energy versus nuclear, wind, solar and agricultural biomass: Insights from an Italian national survey," Energy Policy, Elsevier, vol. 42(C), pages 59-66.
    25. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    26. Zarnikau, Jay, 2003. "Consumer demand for `green power' and energy efficiency," Energy Policy, Elsevier, vol. 31(15), pages 1661-1672, December.
    27. 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.
    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. Ngakan Ketut Acwin Dwijendra & Untung Rahardja & Narukullapati Bharath Kumar & Indrajit Patra & Musaddak Maher Abdul Zahra & Yulia Finogenova & John William Grimaldo Guerrero & Samar Emad Izzat & Taif, 2022. "An Analysis of Urban Block Initiatives Influencing Energy Consumption and Solar Energy Absorption," Sustainability, MDPI, vol. 14(21), pages 1-14, November.
    2. Mihailova, Darja & Schubert, Iljana & Martinez-Cruz, Adan L. & Hearn, Adam X. & Sohre, Annika, 2022. "Preferences for configurations of Positive Energy Districts – Insights from a discrete choice experiment on Swiss households," Energy Policy, Elsevier, vol. 163(C).
    3. Brodnicke, Linda & Gabrielli, Paolo & Sansavini, Giovanni, 2023. "Impact of policies on residential multi-energy systems for consumers and prosumers," Applied Energy, Elsevier, vol. 344(C).
    4. Fausto André Valenzuela-Domínguez & Luis Alfonso Santa Cruz & Enrique A. Enríquez-Velásquez & Luis C. Félix-Herrán & Victor H. Benitez & Jorge de-J. Lozoya-Santos & Ricardo A. Ramírez-Mendoza, 2021. "Solar Irradiation Evaluation through GIS Analysis Based on Grid Resolution and a Mathematical Model: A Case Study in Northeast Mexico," Energies, MDPI, vol. 14(19), pages 1-37, October.
    5. Jamroen, Chaowanan & Fongkerd, Chanon & Krongpha, Wipa & Komkum, Preecha & Pirayawaraporn, Alongkorn & Chindakham, Nachaya, 2021. "A novel UV sensor-based dual-axis solar tracking system: Implementation and performance analysis," Applied Energy, Elsevier, vol. 299(C).
    6. Marlena Piekut, 2021. "The Consumption of Renewable Energy Sources (RES) by the European Union Households between 2004 and 2019," Energies, MDPI, vol. 14(17), pages 1-31, September.
    7. Nabavi-Pelesaraei, Ashkan & Azadi, Hossein & Van Passel, Steven & Saber, Zahra & Hosseini-Fashami, Fatemeh & Mostashari-Rad, Fatemeh & Ghasemi-Mobtaker, Hassan, 2021. "Prospects of solar systems in production chain of sunflower oil using cold press method with concentrating energy and life cycle assessment," Energy, Elsevier, vol. 223(C).
    8. Abajian, Alexander & Pretnar, Nick, 2021. "An Aggregate Perspective on the Geo-spatial Distribution of Residential Solar Panels," MPRA Paper 105481, University Library of Munich, Germany.
    9. Hengtian Wang & Xiaolong Yang & Xinxin Xu & Liu Fei, 2021. "Exploring Opportunities and Challenges of Solar PV Power under Carbon Peak Scenario in China: A PEST Analysis," Energies, MDPI, vol. 14(11), pages 1-28, May.
    10. Fang, Xingming & Qu, Zitang & Sun, Chuanwang & Wu, Chengkuan & Wei, Jing, 2022. "Public attitude and policy selection of future energy sustainability in China: Evidence of the survey of the college students," Energy Policy, Elsevier, vol. 165(C).
    11. Gui, Xuechen & Gou, Zhonghua, 2022. "Household energy technologies in New South Wales, Australia: Regional differences and renewables adoption rates," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    12. Qiqing Wang & Cunbin Li, 2021. "An evolutionary analysis of new energy and industry policy tools in China based on large-scale policy topic modeling," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-19, May.

    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. Amador, Francisco Javier & González, Rosa Marina & Ramos-Real, Francisco Javier, 2013. "Supplier choice and WTP for electricity attributes in an emerging market: The role of perceived past experience, environmental concern and energy saving behavior," Energy Economics, Elsevier, vol. 40(C), pages 953-966.
    2. 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.
    3. 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.
    4. 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.
    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. Bae, Jeong Hwan & Rishi, Meenakshi, 2018. "Increasing consumer participation rates for green pricing programs: A choice experiment for South Korea," Energy Economics, Elsevier, vol. 74(C), pages 490-502.
    7. 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.
    8. 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.
    9. Cardella, Eric & Ewing, Brad & Williams, Ryan Blake, 2018. "Green is Good – The Impact of Information Nudges on the Adoption of Voluntary Green Power Plans," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266583, Southern Agricultural Economics Association.
    10. Anders Dugstad & Kristine M. Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2021. "Scope Elasticity of Willingness to pay in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 21-57, September.
    11. Komarek, Timothy M. & Lupi, Frank & Kaplowitz, Michael D., 2011. "Valuing energy policy attributes for environmental management: Choice experiment evidence from a research institution," Energy Policy, Elsevier, vol. 39(9), pages 5105-5115, September.
    12. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Scope elasticity and economic significance in discrete choice experiments," Discussion Papers 942, Statistics Norway, Research Department.
    13. 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.
    14. 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.
    15. Elcin Akcura, 2013. "Mandatory versus voluntary payment for green electricity," Working Papers 161, European Bank for Reconstruction and Development, Office of the Chief Economist.
    16. Elcin Akcura, 2013. "Mandatory vs voluntary Payment for Green Electricity," Cambridge Working Papers in Economics 1339, Faculty of Economics, University of Cambridge.
    17. Murakami, Kayo & Ida, Takanori & Tanaka, Makoto & Friedman, Lee, 2015. "Consumers' willingness to pay for renewable and nuclear energy: A comparative analysis between the US and Japan," Energy Economics, Elsevier, vol. 50(C), pages 178-189.
    18. Elcin Akcura, 2013. "Mandatory vs Voluntary Payment for Green Electricity," Working Papers EPRG 1316, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    19. Ma, Chunbo & Rogers, Abbie A. & Kragt, Marit E. & Zhang, Fan & Polyakov, Maksym & Gibson, Fiona & Chalak, Morteza & Pandit, Ram & Tapsuwan, Sorada, 2015. "Consumers’ willingness to pay for renewable energy: A meta-regression analysis," Resource and Energy Economics, Elsevier, vol. 42(C), pages 93-109.
    20. Sardaro, Ruggiero & Faccilongo, Nicola & Roselli, Luigi, 2019. "Wind farms, farmland occupation and compensation: Evidences from landowners’ preferences through a stated choice survey in Italy," Energy Policy, Elsevier, vol. 133(C).

    More about this item

    Keywords

    Solar energy policy; Willingness-to-pay; Attitudes toward solar energy;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:eee:enepol:v:137:y:2020:i:c:s0301421519307736. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.