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Electricity Supply Preferences in Europe: Evidence from Subjective Well-Being Data

Author

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  • Heinz Welsch

    () (University of Oldenburg, Department of Economics)

  • Philipp Biermann

    () (University of Oldenburg, Department of Economics)

Abstract

We use survey data for 139,517 individuals in 26 European Countries, 2002-2011, to estimate the relationship between subjective well-being (SWB) and production shares of various types of electricity generation. The estimated relationships are taken to represent preference relationships over attributes of electricity supply systems (costs, safety, environmental friendliness etc.). Controlling for a variety of individual and macro-level factors, we find that individuals’ SWB varies systematically and significantly with differences in the electricity mix across countries and across time. Among other results, we find that a greater share of solar and wind power relative to nuclear power is associated with greater SWB and that the implied preference for solar and wind power over nuclear power has risen drastically after the Fukushima nuclear accident. In general, our results suggest that environmental and safety concerns are of major importance in European citizens’ preference function over electricity supply structures.

Suggested Citation

  • Heinz Welsch & Philipp Biermann, 2013. "Electricity Supply Preferences in Europe: Evidence from Subjective Well-Being Data," Working Papers V-359-13, University of Oldenburg, Department of Economics, revised Aug 2013.
  • Handle: RePEc:old:dpaper:359
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Heinz Welsch & Philipp Biermann, 2014. "Energy Prices, Energy Poverty, and Well-Being: Evidence for European Countries," Working Papers V-369-14, University of Oldenburg, Department of Economics, revised Sep 2014.
    2. Gawel, Erik & Strunz, Sebastian & Lehmann, Paul, 2014. "Wie viel Europa braucht die Energiewende?," UFZ Discussion Papers 4/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    3. Charlotte von Möllendorff & Heinz Welsch, 2017. "Measuring Renewable Energy Externalities: Evidence from Subjective Well-being Data," Land Economics, University of Wisconsin Press, vol. 93(1), pages 109-126.
    4. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    5. Welsch, Heinz & Biermann, Philipp, 2016. "Measuring nuclear power plant externalities using life satisfaction data: A spatial analysis for Switzerland," Ecological Economics, Elsevier, vol. 126(C), pages 98-111.
    6. Sebastian Strunz, Erik Gawel, and Paul Lehmann, 2015. "Towards a general Europeanization of EU Member States energy policies?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    7. Welsch, Heinz & Biermann, Philipp, 2014. "Fukushima and the preference for nuclear power in Europe: Evidence from subjective well-being data," Ecological Economics, Elsevier, vol. 108(C), pages 171-179.
    8. Liu, Shen & Colson, Gregory & Hao, Na & Wetzstein, Michael, 2018. "Toward an optimal household solar subsidy: A social-technical approach," Energy, Elsevier, vol. 147(C), pages 377-387.
    9. Welsch, Heinz, 2016. "Electricity Externalities, Siting, and the Energy Mix: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 57-94, November.
    10. Huh, Sung-Yoon & Woo, JongRoul & Lim, Sesil & Lee, Yong-Gil & Kim, Chang Seob, 2015. "What do customers want from improved residential electricity services? Evidence from a choice experiment," Energy Policy, Elsevier, vol. 85(C), pages 410-420.
    11. Byun, Hyunsuk & Lee, Chul-Yong, 2017. "Analyzing Korean consumers’ latent preferences for electricity generation sources with a hierarchical Bayesian logit model in a discrete choice experiment," Energy Policy, Elsevier, vol. 105(C), pages 294-302.
    12. repec:eee:resene:v:52:y:2018:i:c:p:18-32 is not listed on IDEAS
    13. repec:gam:jeners:v:10:y:2017:i:8:p:1127-:d:106550 is not listed on IDEAS
    14. Welsch, Heinz & Ferreira, Susana, 2014. "Environment, Well-Being, and Experienced Preference," International Review of Environmental and Resource Economics, now publishers, vol. 7(3-4), pages 205-239, December.

    More about this item

    Keywords

    : energy mix; preference; subjective well-being; energy transition; Fukushima;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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