Do Environmental Benefits Matter? A Choice Experiment Among House Owners in Germany

34 Pages Posted: 16 Jan 2011

See all articles by Martin Achtnicht

Martin Achtnicht

Leibniz Institute of Urban and Regional Development; ZEW – Leibniz Centre for European Economic Research

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

Residential buildings strongly contribute to global CO2 emissions due to the high energy demand for electricity and heating, particularly in industrialised countries. Within the EU, decentralised heat generation is of particular relevance for future climate policy, as its emissions are not covered by the EU ETS. We conducted a choice experiment concerning energy retro fits for existing houses in Germany. In the experiment, the approximately 400 sampled house owners could either choose a modern heating system or an improved thermal insulation for their home. We used standard and mixed logit specifications to analyse the choice data. We found environmental benefits to have a significant impact on choices of heating systems. However, they played no role in terms of insulation choices. Based on the estimated mixed logit model, we further obtained WTP measures for CO2 savings.

Keywords: Choice experiment, CO2 emissions, Energy efficiency, Energy saving, Mixed logit, Residential buildings, Willingness to pay

JEL Classification: C25, D12, Q40, Q51

Suggested Citation

Achtnicht, Martin, Do Environmental Benefits Matter? A Choice Experiment Among House Owners in Germany (2010). ZEW - Centre for European Economic Research Discussion Paper No. 10-094, Available at SSRN: https://ssrn.com/abstract=1739749 or http://dx.doi.org/10.2139/ssrn.1739749

Martin Achtnicht (Contact Author)

Leibniz Institute of Urban and Regional Development ( email )

Weberplatz 1
Dresden, 01217
Germany

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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