Willingness to pay for green electricity
|Author:||Mgr. Jan Novák|
|Year:||2015 - summer|
|Leaders:|| Mgr. Milan Ščasný PhD.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||We estimate the willingness to pay for electricity generated from renewable energy in the Czech
Republic. Discrete choice experiment is used to elicit preferences for various attributes of renewable
electricity support scheme (PM emission, GHG emission, size of RE power plant, revenue distribution,
and costs). Original survey is carried with 404 respondents living in two regions – Ustecky (polluted
area) and Southern Bohemia (cleaner area). We find that respondents prefer decentralized renewable
electricity sources over centralized, local air quality improvements over reduction in greenhouse gas
emissions. Estimated marginal willingness to pay for 1% reduction in emission of particulate matter
equals to 49 CZK, respectively 3.7 % of average monthly electricity bill. In total, WTP for green
electricity is larger than current compulsory contributions to renewable energy support scheme.