Hypothetical Market Familiarity and the Disconnect Between Stated and Observed Values for Green Energy

Charles Sims

International Journal of Energy Economics and Policy, 2013, vol. 3, issue 1, 10-19

Abstract: Participation rates and utility premiums for green power programs are generally less than implied by contingent valuation studies. This study compares open-ended and dichotomouschoice responses with actual participation rates of a green power program to examine the effect of hypothetical market familiarity. Traditionally, respondents are asked to value a renewable energy block which represents a quality improvement in a percentage of a good. When placed in a more familiar market setting, stated values are more closely aligned with premiums currently charged. Participation rates remain exaggerated indicating responses are viewed as a vote in favor of or against cleaner energy sources.

Keywords: Contingent valuation; green energy programs; renewable energy blocks; scope effects; coal-fired power plants; single-bounded dichotomous choice (search for similar items in EconPapers)
JEL-codes: H41 Q42 Q51 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2013-01-2

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