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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

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

Abstract

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.

Suggested Citation

  • Soliño, Mario & Farizo, Begoña A. & Campos, Pablo, 2009. "The influence of home-site factors on residents' willingness to pay: An application for power generation from scrubland in Galicia, Spain," Energy Policy, Elsevier, vol. 37(10), pages 4055-4065, October.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:4055-4065
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. repec:fan:efeefe:v:html10.3280/efe2017-001013 is not listed on IDEAS
    3. 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.
    4. repec:eee:energy:v:125:y:2017:i:c:p:313-326 is not listed on IDEAS
    5. 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.
    6. Begoña A. Farizo & John Joyce & Mario Soliño, 2014. "Dealing with Heterogeneous Preferences Using Multilevel Mixed Models," Land Economics, University of Wisconsin Press, vol. 90(1), pages 181-198.
    7. Soliño, Mario & Prada, Albino & Vázquez, María X., 2010. "Designing a forest-energy policy to reduce forest fires in Galicia (Spain): A contingent valuation application," Journal of Forest Economics, Elsevier, vol. 16(3), pages 217-233, August.
    8. Caballero, Gonzalo, 2015. "Community-based forest management institutions in the Galician communal forests: A new institutional approach," Forest Policy and Economics, Elsevier, vol. 50(C), pages 347-356.
    9. Martinez-Paz, José M. & Almansa-Sáez, Carmen & Perni-Llorente, Ángel, 2011. "Energía eléctrica procedente de fuentes renovables: percepción social y disposición al pago/Willingness to pay for electricity from renewable sources," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 29, pages 539-560, Agosto.
    10. 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.
    11. Chan, Kai-Ying & Oerlemans, Leon A.G. & Volschenk, Jako, 2015. "On the construct validity of measures of willingness to pay for green electricity: Evidence from a South African case," Applied Energy, Elsevier, vol. 160(C), pages 321-328.
    12. 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.

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