Exploring Residents' Willingness to Pay for Renewable Energy Supply: Evidences from an Italian Case Study
12 Pages Posted: 7 Oct 2015
Date Written: October 6, 2015
The present study offers a Contingent Valuation application to explore residents' willingness to pay for renewable energy supply in a case study in the Italian Alps. Data were originated from onsite personal interviews and were analyzed with a Tobit model. Results show that respondents are willing to pay, on average, 5.1€ per month for a 100% of renewable energy supply, corresponding approximately to a 13% increase in the energy bill. Among the factors positively affecting the answers, the personal knowledge about renewable energy plays a key role in predicting WTP, as well as income and the personal perception of a possible future development of hydropower plants. On the other hand, age and number of household components negatively affect WTP.
Keywords: Renewable energy, willingness to pay, contingent valuation, Tobit model, Italian Alps, recharge.green
JEL Classification: Q41, Q26, Q42
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