IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Valuation for renewable energy: A comparative review

  • Menegaki, Angeliki
Registered author(s):

    Environmental cost-benefit analysis is applied for the evaluation of renewable energy projects. Since some benefits and costs do not have monetary values, economic valuation techniques are applied to estimate them. This paper reviews the literature on the valuation/evaluation of renewable energy resources and summarizes the methods used in them. It discerns four main streams of valuation in renewable energy. The first is economic, welfare oriented and comprises stated and revealed preference methods; the second is the financial option analysis with a financial background; the third is emergy analysis, which is mostly an ecological engineering-based method with capable economic links, and the fourth is again economic but not welfare based. The paper discusses the main directions discerned in these studies and recognizes first that proper valuation takes place only in the first method while the other methods describe only evaluation procedures and second that there is a research gap that has yet to be filled in as compared to other areas of environmental, resource and energy economics.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/B6VMY-4P8985W-1/2/091aac70d825b9d8e28d4c8c0304d295
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 12 (2008)
    Issue (Month): 9 (December)
    Pages: 2422-2437

    as
    in new window

    Handle: RePEc:eee:rensus:v:12:y:2008:i:9:p:2422-2437
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Felder, Frank A, 1996. "Integrating financial theory and methods in electricity resource planning," Energy Policy, Elsevier, vol. 24(2), pages 149-154, February.
    2. 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.
    3. Awerbuch, Shimon & Sauter, Raphael, 2006. "Exploiting the oil-GDP effect to support renewables deployment," Energy Policy, Elsevier, vol. 34(17), pages 2805-2819, November.
    4. 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.
    5. Carson, Richard T & Flores, Nicholas A, 2000. "Contingent Valuation: Controversies and Evidence," University of California at San Diego, Economics Working Paper Series qt75k752s7, Department of Economics, UC San Diego.
    6. Neumayer, Eric, 2000. "On the methodology of ISEW, GPI and related measures: some constructive suggestions and some doubt on the 'threshold' hypothesis," Ecological Economics, Elsevier, vol. 34(3), pages 347-361, September.
    7. MacLeod, Michael & Moran, Dominic & Spencer, Ian, 2006. "Counting the cost of water use in hydroelectric generation in Scotland," Energy Policy, Elsevier, vol. 34(15), pages 2048-2059, October.
    8. 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.
    9. Awerbuch, Shimon, 2000. "Investing in photovoltaics: risk, accounting and the value of new technology," Energy Policy, Elsevier, vol. 28(14), pages 1023-1035, November.
    10. 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.
    11. Venetsanos, Konstantinos & Angelopoulou, Penelope & Tsoutsos, Theocharis, 2002. "Renewable energy sources project appraisal under uncertainty: the case of wind energy exploitation within a changing energy market environment," Energy Policy, Elsevier, vol. 30(4), pages 293-307, March.
    12. Weisser, Daniel, 2004. "Costing electricity supply scenarios: A case study of promoting renewable energy technologies on Rodriguez, Mauritius," Renewable Energy, Elsevier, vol. 29(8), pages 1319-1347.
    13. Zarnikau, Jay, 2003. "Consumer demand for `green power' and energy efficiency," Energy Policy, Elsevier, vol. 31(15), pages 1661-1672, December.
    14. Philip Lawn, 2005. "An Assessment of the Valuation Methods Used to Calculate the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and Sustainable Net Benefit Index (SNBI)," Environment, Development and Sustainability, Springer, vol. 7(2), pages 185-208, 06.
    15. 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.
    16. 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.
    17. Siddiqui, Afzal S. & Marnay, Chris & Wiser, Ryan H., 2007. "Real options valuation of US federal renewable energy research, development, demonstration, and deployment," Energy Policy, Elsevier, vol. 35(1), pages 265-279, January.
    18. Bhuiyan, M.M.H & Asgar, M.Ali & Mazumder, R.K & Hussain, M, 2000. "Economic evaluation of a stand-alone residential photovoltaic power system in Bangladesh," Renewable Energy, Elsevier, vol. 21(3), pages 403-410.
    19. Awerbuch, Shimon, 1996. "Editor's introduction : The problem of valuing new energy technologies," Energy Policy, Elsevier, vol. 24(2), pages 127-128, February.
    20. Close, Josie & Pang, Huey & Lam, K.H. & Li, Thomas, 2006. "10% from renewables? The potential contribution from an HK schools PV installation programme," Renewable Energy, Elsevier, vol. 31(11), pages 1665-1672.
    21. El-Kordy, M.N & Badr, M.A & Abed, K.A & Ibrahim, Said M.A, 2002. "Economical evaluation of electricity generation considering externalities," Renewable Energy, Elsevier, vol. 25(2), pages 317-328.
    22. Wood, Lisa L. & Kenyon, Anne E. & Desvousges, William H. & Morander, Lyn K., 1995. "How much are customers willing to pay for improvements in health and environmental quality?," The Electricity Journal, Elsevier, vol. 8(4), pages 70-77, May.
    23. Costanza, Robert & Farber, Stephen C. & Maxwell, Judith, 1989. "Valuation and management of wetland ecosystems," Ecological Economics, Elsevier, vol. 1(4), pages 335-361, December.
    24. Sundqvist, Thomas, 2004. "What causes the disparity of electricity externality estimates?," Energy Policy, Elsevier, vol. 32(15), pages 1753-1766, October.
    25. Nick Hanley, 2001. "Cost - benefit analysis and environmental policymaking," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(1), pages 103-118, February.
    26. Jenerette, G. Darrel & Marussich, Wendy A. & Newell, Joshua P., 2006. "Linking ecological footprints with ecosystem valuation in the provisioning of urban freshwater," Ecological Economics, Elsevier, vol. 59(1), pages 38-47, August.
    27. Hanley, Nick & Nevin, Ceara, 1999. "Appraising renewable energy developments in remote communities: the case of the North Assynt Estate, Scotland," Energy Policy, Elsevier, vol. 27(9), pages 527-547, September.
    28. Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
    29. Davis, Graham A. & Owens, Brandon, 2003. "Optimizing the level of renewable electric R&D expenditures using real options analysis," Energy Policy, Elsevier, vol. 31(15), pages 1589-1608, December.
    30. 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.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:12:y:2008:i:9:p:2422-2437. 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: (Zhang, Lei)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.