Preferences for Energy Efficiency vs. Renewables: What Is the Willingness to Pay to Reduce CO2 Emissions?
Milan Ščasný () and
Ecological Economics, 2018, vol. 144, issue C, 171-185
Concerns about climate change are growing, and so is the demand for information about the costs and benefits of mitigating greenhouse gas emissions. This paper seeks to estimate the benefits of climate change mitigation, as measured by the public's willingness to pay for such policies. We investigate the preferences of Italian and Czech households towards climate change mitigation policy options directly related to residential energy use. We use discrete choice experiments, which are administered in a standardized fashion to representative samples in the two countries through computer-assisted web interviews. Our preferred estimates of the willingness to pay per ton of CO2 emissions avoided is €133 for the Italians and €94 Euro for the Czech respondents (at 2014 purchasing power parity). We find evidence of considerable heterogeneity in WTP driven by income. The two samples differ in their within-sample income elasticities of WTP, but comparison across the two countries suggests an income elasticity of WTP of one—or even greater than one for certain mixed logit specifications.
Keywords: Energy-efficiency incentives; CO2 emissions reductions; Stated preferences; Conjoint choice experiments, WTP for CO2 emissions reductions; Income elasticity of WTP (search for similar items in EconPapers)
JEL-codes: Q41 Q48 Q54 Q51 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:144:y:2018:i:c:p:171-185
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().