Public values on offshore wind farm

Naresh Nepal (), Eric Steltzer, Alok Bohara and Kelly Cullen
Additional contact information
Naresh Nepal: University of New Mexico
Eric Steltzer: Massachusetts Department of Energy Resources
Kelly Cullen: University of New Hampshire

Environmental Economics and Policy Studies, 2018, vol. 20, issue 1, No 11, 225-240

Abstract: Abstract The purpose of this study is twofold: (1) to examine households’ willingness to pay for preserving offshore natural beauty from the construction of wind farm as an alternative nonrenewable energy and (2) to analyze the effect on the economic value of a public good resulting from the change in order of information. We employ parametric method with logistic distribution and distribution-free Turnbull estimator to a dichotomous choice contingent valuation survey to elicit economic value of preserving offshore area in Nantucket Sound, Massachusetts. Using Turnbull estimator, the economic values of public good in question, as measured by expected lower bound willingness to pay (WTP) and willingness to accept (WTA), are estimated to be $56.74 and $89.44 per year, respectively. However, the censored logistic regression, which depends on the assumed logistic distribution, produced median WTP and WTA of very small values $0.08 and $0.09. Regarding the survey treatment, we find no significant effect of the order of information on WTP/WTA responses.

Keywords: Offshore wind farm; Dichotomous choice; Contingent valuation; Willingness to pay; Willingness to accept (search for similar items in EconPapers)
JEL-codes: Q (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10018-017-0191-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0191-8

Ordering information: This journal article can be ordered from
http://www.springer. ... mental/journal/10018

DOI: 10.1007/s10018-017-0191-8

Access Statistics for this article

Environmental Economics and Policy Studies is currently edited by Ken-Ichi Akao

More articles in Environmental Economics and Policy Studies from Springer, Society for Environmental Economics and Policy Studies - SEEPS Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().