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Social demand for electricity from forest biomass in Spain: Does payment periodicity affect the willingness to pay?

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  • Soliño, Mario
  • Vázquez, María X.
  • Prada, Albino

Abstract

In this article, we analyze social preferences for a partial substitution programme of electricity generated by conventional energy sources, for energy generated from a local renewable energy source, such as forest biomass. This analysis sets arguments in favour of accelerating the introduction of this renewable technology in the Spanish Electricity System. Simultaneously, two methodological goals concerning the contingent valuation method are discussed. In the first one, we analyze if there are statistical differences in the willingness to pay (WTP) when a single- or a double-bounded format is employed to ask the valuation question. Results show that WTP estimates from single- and double-bounded significantly differ. In the second one, we analyze the effect of the periodicity of the payment vehicle on the estimates of welfare change. The timeframe specification of the payment vehicle has been scarcely studied, and this fact constitutes the main contribution of this paper to the specialized literature. Results show that periodicity influences upon the probability to favour the proposed change. The periodicity does not affect to the mean WTP obtained in the single-bounded format, but there are statistical differences in the double-bounded format. These results might be explained by the presence of yea saying and payment scale bias.

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  • Soliño, Mario & Vázquez, María X. & Prada, Albino, 2009. "Social demand for electricity from forest biomass in Spain: Does payment periodicity affect the willingness to pay?," Energy Policy, Elsevier, vol. 37(2), pages 531-540, February.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:2:p:531-540
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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. Giulia Bettin & Riccardo Lucchetti, . "Instrumental Variable Interval Regression," EHUCHAPS, Universidad del País Vasco - Facultad de Ciencias Económicas y Empresariales.
    3. repec:eee:energy:v:128:y:2017:i:c:p:284-290 is not listed on IDEAS
    4. Ladenburg, Jacob, 2014. "Dynamic properties of the preferences for renewable energy sources – A wind power experience-based approach," Energy, Elsevier, vol. 76(C), pages 542-551.
    5. 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.
    6. Zografakis, Nikolaos & Sifaki, Elli & Pagalou, Maria & Nikitaki, Georgia & Psarakis, Vasilios & Tsagarakis, Konstantinos P., 2010. "Assessment of public acceptance and willingness to pay for renewable energy sources in Crete," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1088-1095, April.
    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. Kontogianni, Areti & Tourkolias, Christos & Skourtos, Michalis, 2013. "Renewables portfolio, individual preferences and social values towards RES technologies," Energy Policy, Elsevier, vol. 55(C), pages 467-476.
    9. repec:fan:efeefe:v:html10.3280/efe2017-001013 is not listed on IDEAS
    10. 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.
    11. 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.
    12. Sundt, Swantje & Rehdanz, Katrin, 2015. "Consumers' willingness to pay for green electricity: A meta-analysis of the literature," Energy Economics, Elsevier, vol. 51(C), pages 1-8.
    13. Ortega, Margarita & del Río, Pablo & Montero, Eduardo A., 2013. "Assessing the benefits and costs of renewable electricity. The Spanish case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 294-304.
    14. Loraima Jaramillo-Nieves & Pablo Del Río, 2010. "Contribution of Renewable Energy Sources to the Sustainable Development of Islands: An Overview of the Literature and a Research Agenda," Sustainability, MDPI, Open Access Journal, vol. 2(3), pages 1-29, March.
    15. repec:eee:rensus:v:81:y:2018:i:p1:p:242-249 is not listed on IDEAS
    16. 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.
    17. Groth, Tanja & Scholtens, Bert, 2016. "A comparison of cost-benefit analysis of biomass and natural gas CHP projects in Denmark and the Netherlands," Renewable Energy, Elsevier, vol. 86(C), pages 1095-1102.
    18. 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.
    19. 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.

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