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The influence of home-site factors on residents' willingness to pay: An application for power generation from scrubland in Galicia, Spain

  • Soliño, Mario
  • Farizo, Begoña A.
  • Campos, Pablo

The main objective of this paper is to measure how much home-site factors can help to explain the individual WTP for an environmental improvement in power generation in Galicia, Spain. The results show that home-site variables such as a dispersed population, local community income, population growth and coastal/inland emplacements have significant effects on the residents' WTP. Individual and home-site models are compared using goodness-of-fit measures, and implications for forestry resources management and energy planning are discussed. The results favor to take into account the home-site variables into the WTP function. Moreover, a different structure of preferences for coastal and inland inhabitants is identified. A cross-validity analysis shows that some home-site coefficients are common to both sub-samples, but the scale parameters are not homogenous. This analysis could be useful to inform and support the public energy policy when designing incentives that promote the electric use of biomass.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 37 (2009)
Issue (Month): 10 (October)
Pages: 4055-4065

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Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:4055-4065
Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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