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Consequentiality, Elicitation Formats, and the Willingness to Pay for Green Electricity: Evidence from Germany

Author

Listed:
  • Mark A. Andor
  • Manuel Frondel
  • Marco Horvath

Abstract

Based on hypothetical responses from a large-scale survey among about 6,000 German households, this study investigates the discrepancy in willingness-to-pay (WTP) estimates for green electricity across single-binary-choice and open-ended valuation formats. Recognizing that respondents self-select into two groups distinguished by their beliefs in their answers’ consequences for policy making, we use a switching regression model that accounts for the potential endogeneity of respondents’ beliefs in consequences and biases from sample selectivity. Contrasting with the received literature, we find that WTP bids tend to be higher among those respondents who received questions in the open-ended, rather than in the single-binary-choice format.

Suggested Citation

  • Mark A. Andor & Manuel Frondel & Marco Horvath, 2021. "Consequentiality, Elicitation Formats, and the Willingness to Pay for Green Electricity: Evidence from Germany," Land Economics, University of Wisconsin Press, vol. 97(3), pages 626-640.
    • Handle: RePEc:uwp:landec:v:97:y:2021:i:3:p:626-640
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    File URL: http://le.uwpress.org/cgi/reprint/97/3/626
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    Cited by:

    1. Lim, Sungmin & Choi, Syngjoo & Hong, Jong Ho & Kim, Booyuel & Lee, Heerae & Shin, Jinwook, 2025. "Promoting willingness to pay for environmental charges in electricity tariff: Evidence from a randomized survey experiment," Energy Economics, Elsevier, vol. 152(C).
    2. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2021. "The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany," Energy Economics, Elsevier, vol. 100(C).
    3. Jonas Heckenhahn & Moritz A. Drupp, 2024. "Relative Price Changes of Ecosystem Services: Evidence from Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(3), pages 833-880, March.

    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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