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Impact of beliefs about negative effects of wind turbines on preference heterogeneity regarding renewable energy development in Poland

Anna Bartczak (), Wiktor Budzinski () and Bernadeta Gołębiowska ()

No 2018-19, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: We investigate individuals’ preferences for renewable energy development in Poland. Our main objective is to examine whether preferences for avoiding externalities from renewable energy development near respondents’ place of residence are influenced by their personal beliefs about the negative effects of wind turbine activity. We focus on attitudes towards wind power because it has had the most dynamic development among all renewable energy sources in Poland. To elicit values on avoiding renewable energy externalities, we use a choice experiment (CE) approach. To conduct our analysis we applied a theoretically robust econometric approach, the hybrid mixed logit model. From our analysis of data from a large sample of the Polish population, we find that beliefs about wind turbine have distinct negative effects on respondents’ preferences concerning renewable energy development. Respondents who generally have an opinion about potential wind turbine effects would like to have input on renewable energy development in their neighbourhood. Latent beliefs that wind power is not harmful enhance respondents’ preferences for implementing a wind energy project and enhance preferences against solar power development. These beliefs appears to be significantly correlated with respondents’ marginal utility of money.

Keywords: beliefs about negative effects; choice experiment; preference heterogeneity; renewable energy externalities; stated preferences (search for similar items in EconPapers)
JEL-codes: D12 H41 Q48 Q51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-eur and nep-exp
Date: 2018
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Handle: RePEc:war:wpaper:2018-19