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Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies

Scarpa, Riccardo and Willis, Ken (2010). Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies. Energy Economics,32(1):129-136.

Document type: Journal Article
Citation counts: Altmetric Score Altmetric Score is 7
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IRMA ID 81704288xPUB467
Title Willingness-to-pay for renewable energy: Primary and discretionary choice of British households' for micro-generation technologies
Author Scarpa, Riccardo
Willis, Ken
Journal Name Energy Economics
Publication Date 2010
Volume Number 32
Issue Number 1
ISSN 0140-9883   (check CDU catalogue  open catalogue search in new window)
Start Page 129
End Page 136
Total Pages 7
Place of Publication Netherlands
Publisher Elsevier BV
HERDC Category C1 - Journal Article (DIISR)
Abstract This paper documents the policy context of renewable energy production in the European Union. The research adopts a choice experiment approach to investigate households' WTP for these renewable energy technologies in the UK. The micro-generation technologies comprise solar photovoltaic, micro-wind, solar thermal, heat pumps, and biomass boilers and pellet stoves. The study compares the results from conditional and mixed logit models, which estimate the distribution of utility coefficients and then derives WTP values as a ratio of the attribute coefficient to the price coefficient, with a model in which the WTP distribution is estimated directly from utility in the money space. The results suggest that whilst renewable energy adoption is significantly valued by households, this value is not sufficiently large, for the vast majority of households, to cover the higher capital costs of micro-generation energy technologies.
Keywords Renewable energy
Mico-generation
Choice modelling
Mixed logit
DOI http://dx.doi.org/doi:10.1016/j.eneco.2009.06.004   (check subscription with CDU E-Gateway service for CDU Staff and Students  check subscription with CDU E-Gateway in new window)
 
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