A Dynamic Analysis of the Green Electricity Fund:Threshold Models Revisited

Nobuyuki Ito, Kenji Takeuchi (), Takahiro Tsuge and Atsuo Kishimoto
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Nobuyuki Ito: Graduate School of Economics, Kobe University, Japan
Takahiro Tsuge: Faculty of Economics, Konan University, Japan
Atsuo Kishimoto: National Institute of Advanced Industrial Science and Technology, Japan

No 909, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study applies a threshold model proposed by Granovetter (1978) to analyze the dynamic diffusion process of donating behavior for renewable energy. Using data on people's willingness to donate for renewable energy under various predicted participation rates, we simulate how herd behavior spreads and the participation rate reaches the equilibrium. The participation rate at the equilibrium is estimated as 66.46% when the suggested donation is 500 yen, while it is 25.88% when the suggested amount is 1,000 yen. The influence of environmentalism and altruism is also examined, and we find that these motivations increase the participation rate 43.38% on average.

Keywords: Green electricity fund; Dynamic analysis; Contingent Valuation; Threshold model (search for similar items in EconPapers)
JEL-codes: H41 Q42 Q51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-env
Date: 2009-06

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