Valuing wind farms’ environmental impacts by geographical distance: A contingent valuation study in Portugal
Wind energy is currently one the most important energy sources in the production of electricity. In this study, we use the CVM to elicit the monetary value attached to wind power’s environmental impacts from three different groups of individuals: local residents, residents in a nearby town, and residents outside the area of a wind farm located in Portugal, one of the top 10 countries in the world with the highest cumulative wind power capacity to date. In each case, our empirical analysis employs a novel likelihood function that is constructed to be appropriate for the type of data collected. The main results are supportive of a NYMBY effect, but also indicate that the amount needed to compensate local residents for the negative impacts caused by the wind farm can be raised by the constitution of a compensation fund paid by non-residents, thereby overcoming the inefficiency caused by the NYMBY effect.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +351 253601930
Fax: +351 253601380
Web page: http://nima.eeg.uminho.pt/
|Order Information:|| Postal: NIMA, EEG - Universidade do Minho, 4710-057 Braga, Portugal|
Web: http://nima.eeg.uminho.pt/ Email:
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.:
- Bergmann, Ariel & Hanley, Nick & Wright, Robert, 2006. "Valuing the attributes of renewable energy investments," Energy Policy, Elsevier, vol. 34(9), pages 1004-1014, June.
- Richard A. Hofler & John A. List, 2004.
"Valuation on the Frontier: Calibrating Actual and Hypothetical Statements of Value,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 86(1), pages 213-221.
- John List & Richard Hofler, 2004. "Valuation on the frontier: Calibrating actual and hypothetical statements of value," Framed Field Experiments 00159, The Field Experiments Website.
- 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.
- Bengt Kriström, 1993. "Comparing continuous and discrete contingent valuation questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(1), pages 63-71, February.
- Groothuis, Peter A. & Groothuis, Jana D. & Whitehead, John C., 2008.
"Green vs. green: Measuring the compensation required to site electrical generation windmills in a viewshed,"
Elsevier, vol. 36(4), pages 1545-1550, April.
- Peter A. Groothuis & Jana D. Groothuis & John C. Whitehead, 2007. "Green vs. Green: Measuring the Compensation Required to Site Electrical Generation Windmills in a Viewshed," Working Papers 07-12, Department of Economics, Appalachian State University.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
- Kunreuther, Howard & Kleindorfer, Paul & Knez, Peter J. & Yaksick, Rudy, 1987. "A compensation mechanism for siting noxious facilities: Theory and experimental design," Journal of Environmental Economics and Management, Elsevier, vol. 14(4), pages 371-383, December.
- Roberto G. Gutierrez & Shana Carter & David M. Drukker, 2001. "On boundary-value likelihood-ratio tests," Stata Technical Bulletin, StataCorp LP, vol. 10(60).
- Saidur, R. & Rahim, N.A. & Islam, M.R. & Solangi, K.H., 2011. "Environmental impact of wind energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2423-2430, June.
- Ladenburg, Jacob & Dubgaard, Alex, 2007. "Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark," Energy Policy, Elsevier, vol. 35(8), pages 4059-4071, August.
When requesting a correction, please mention this item's handle: RePEc:nim:nimawp:52/2013. 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: (NIMA)
If references are entirely missing, you can add them using this form.