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The willingness to pay for Renewable Energy Sources (RES): the case of Italy with different survey approaches and under different EU “climate vision”. First results

Listed author(s):
  • Simona Bigerna
  • Paolo Polinori

In reference to the “Renewable Sources” EU Directive 2001/77/CE the Italian goal, for 2010, is to attain the share of 22% in RES electricity production. In such context it becomes crucial to explore the existence of consumer’s Willingness to Pay (WTP) in order to use green energy in the electricity production. This study is founded on a national survey with 1601 phone interviews made, in Italy, at the end of November 2006. This paper focus much on three issues. First one, how the different elicitation affects respondents choices, second one on the relationship between a “single point value” and “a valuation distribution” and finally on the gaps between different formats as: bidding game and dichotomous referendum (single bounded) contingent valuation method. In all the elicitations formats we make a “certainty correction” proposing five degree of acceptance: definitely yes and no (DY, DN), probably yes and no (PY, PN) and don’t know (DK). In order to apply the quantitative analysis, the original dataset has been appropriately treated, recoding DK, PN and PY responses. With regard to the results we found a significant path dependences in respondents answers due to the elicitation formats. Another important result is that also in “conservative” way we found a substantial willingness of consumers to partially cover the cost of Italian RES goal.

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Paper provided by Università di Perugia, Dipartimento Economia in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 58/2008.

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Length: 14 pages
Date of creation: 01 May 2008
Handle: RePEc:pia:wpaper:58/2008
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