Exploring Residents' Willingness to Pay for Renewable Energy Supply: Evidences from an Italian Case Study

12 Pages Posted: 7 Oct 2015

See all articles by Gianluca Grilli

Gianluca Grilli

EURAC Research; University of Trento

Jessica Balest

EURAC Research

Giulia Garegnani

EURAC Research

Alessandro Paletto

Consiglio per la ricerca in agricoltura e l'analisi dell'economia agraria - CREA

Date Written: October 6, 2015

Abstract

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

Suggested Citation

Grilli, Gianluca and Balest, Jessica and Garegnani, Giulia and Paletto, Alessandro, Exploring Residents' Willingness to Pay for Renewable Energy Supply: Evidences from an Italian Case Study (October 6, 2015). Available at SSRN: https://ssrn.com/abstract=2669975

Gianluca Grilli (Contact Author)

EURAC Research ( email )

Viale Druso, 1
Drususallee 1
Bolzano / Bozen, 39100
Italy

University of Trento ( email )

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

Jessica Balest

EURAC Research ( email )

Viale Druso, 1
Drususallee 1
Bolzano / Bozen, 39100
Italy

Giulia Garegnani

EURAC Research ( email )

Viale Druso, 1
Drususallee 1
Bolzano / Bozen, 39100
Italy

Alessandro Paletto

Consiglio per la ricerca in agricoltura e l'analisi dell'economia agraria - CREA ( email )

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