valuing the attributes of renewable energy investments increasing the proportion of power derived from renewable energy sources is becoming an increasingly important part of many countries s strategies to achieve reductions in greenhouse gas emissions however renewable energy investments can often have external costs and benefits which need to be taken into account if socially optimal investments are to be made this paper attempts to estimate the magnitude of these external costs and benefits for the case of renewable technologies in scotland a country which has set particularly ambitious targets for expanding renewable energy the external effects we consider are those on landscape quality wildlife and air quality we also consider the welfare implications of different investment strategies for employment and electricity prices the methodology used to do this is the choice experiment technique renewable technologies considered include hydro on shore and off shore wind power and biomass welfare changes for different combinations of impacts associated with different investment strategies are estimated we also test for differences in preferences towards these impacts between urban and rural communities and between high and low income households

heterogeneity in preferences for woody biomass energy in the us mountain west abstract millions of acres of public forest in the us mountain west are substantially degraded and are in need of restoration mechanized restoration treatments can improve forest health and reduce the likelihood of severe wildfire these treatments produce some timber and substantial amounts of forest residues that can be used to generate renewable energy and displace fossil fuels using the choice modeling method this study investigates social preferences for generation of energy with woody biomass produced by restoration treatments on public forests in the mountain west both multinomial logit and latent class logit lcl models are fit to the data and used to estimate marginal willingness to pay mwtp for increased amounts of woody biomass energy generation and important associated co benefits and costs positive and statistically significant mwtp is found for the number of homes powered with wood the extent of healthy forests avoiding increases in the number of large wildfires and local air quality significant heterogeneity was found in respondent preferences for the attributes the heterogeneity can be explained in part by sociodemographic and attitudinal characteristics of respondents the lcl revealed four classes of respondents with distinct preferences revealing conflicting viewpoints toward forest management for woody biomass energy generation

storage and viability of a fishery with resource and market dephased seasonalities in this study we analyse the role of the storageregulation in a fishery s production process when theresource exploited and the market to which theproduction is exported are characterized by seasonaldephased oscillations for this purpose we built up adynamic model drawn from the french guyana shrimpfishery example the underlying objective of the modelis not the maximisation of a given criterion as wouldbe in the optimal control approach but merely themaintenance of the fishery s economical viability thefundamental principle is here to try to preserve asmany as possible viable control options theconditions to achieve and maintain this viability arecaptured in a certain number of constraints theanalysis points out periods and situations within theseason where the fishermen must anticipate theevolution of their storage to avoid violating thoseviability constraints the study also indicates howthe fishery s viability can be ensured even if theexploitation costs exceed the commercial value of thelandings for a finite part of the year however whenthe resource s and or market s oscillations are toolarge the fishery may be not viable any longer and itappears that the crisis can not be removed byinvesting in larger storage capacities

social costs from proximity to hydraulic fracturing in new york state the study reports data from an economic choice experiment to determine the likely welfare impacts of hydraulic fracturing in this case using natural gas extracted by hydraulic fracturing for household electricity data were collected from an internet survey of 515 residents of new york state the welfare analysis indicated that on average households incur a welfare loss from in state hydraulic fracturing as the source of their electricity the evidence suggests that households in shale counties bear more costs from hf electricity than households out of shale counties the average welfare loss is substantive estimated at 40 46 of average household electric bills in shale counties and 16 20 of bills in counties without shale the evidence also suggests that relative proximity to hf well sites also increases cost borne by households

green transition of energy systems in rural china national survey evidence of households discrete choices on water heaters abstract energy systems in rural china are experiencing a transition from traditional fossil fuels to renewables this paper aims to investigate the potential factors that influence the choices of rural residents regarding water heaters with a focus on the low carbon transition to solar water heating systems to this end a face to face questionnaire survey is undertaken with 3404 rural households randomly selected among 12 representative provinces a comprehensive set of discrete choice modelling approaches were used the empirical results show that 1 sociodemographic variables have significant effects on residents first stage choice of a water heater to buy or not to buy but few effects on the second stage decision to choose electric lpg or solar water heaters which type to buy 2 information spillover is important to facilitate the usage of water heaters particularly of solar products 3 the electricity price which is regulated at a very low rate has no apparent effect on the choice of solar water heaters 4 government subsidy has a significant effect in the first stage but no differentiated effect on the decision choice in the second stage policy and managerial implications are presented to speed up the ongoing low carbon transition of energy systems in china

willingness to pay for renewable energy primary and discretionary choice of british households for micro generation technologies this paper documents the policy context of renewable energy production in the european union the research adopts a choice experiment approach to investigate households wtp for these renewable energy technologies in the uk the micro generation technologies comprise solar photovoltaic micro wind solar thermal heat pumps and biomass boilers and pellet stoves the study compares the results from conditional and mixed logit models which estimate the distribution of utility coefficients and then derives wtp values as a ratio of the attribute coefficient to the price coefficient with a model in which the wtp distribution is estimated directly from utility in the money space the results suggest that whilst renewable energy adoption is significantly valued by households this value is not sufficiently large for the vast majority of households to cover the higher capital costs of micro generation energy technologies

renewables portfolio individual preferences and social values towards res technologies abstract the massive deployment of renewable energy sources represents a high priority for greece in order to comply with the directive 2009 28 ec on the promotion of the use of energy from renewable sources by 2020 in this perspective aegean islands especially lesvos are endowed with a considerable potential of a portfolio of renewables a fact that the entrepreneurial interest has already been targeted however regulatory attempts for a massive penetration of renewables do not take seriously into account preferences and risk perceptions of local communities where the proposed projects are to be installed the aim of this study is to investigate individual preferences and social values towards specific technologies of renewables in lesvos island we apply an open ended contingent valuation survey in order to analyze factors shaping public attitudes towards a portfolio of renewable technologies and estimate the economic welfare willingness to pay of the preferred technologies we argue that such information is relevant for energy policy design and the establishment of effective measures for the promotion of renewable energy sources

non hbox co _2 co 2 generating energy shares in the world cross country differences and polarization the aim of this paper is to examine the spatial distribution of non hbox co 2 generating energy sources in the world for the period 1990 2009 paying special attention to the evolution of cross country disparities to this end after carrying out a classical convergence analysis a more thorough investigation of the entire distribution is presented by examining its external shape the intra distribution dynamics and the long run equilibrium distribution this analysis reveals the existence of a weak rather insignificant convergence process and that large cross country differences are likely to persist in the long run next as polarization indicators are a proper way of appraising potential conflict in international environmental negotiations we test whether or not the distribution dynamics concurs with the presence of polarization our results indicate that two poles can be clearly differentiated one with high and other with low non hbox co 2 generating energy shares in view of these findings and to ensure a fair transition to a sustainable energy system the paper calls for the development of an ambitious clean energy agenda especially in countries with low non hbox co 2 generating energy shares

testing commitment cost theory in choice experiments in choice experiments it is commonly assumed that individuals make choices in static and certainty decision making conditions real world choices however are usually made in a dynamic setting committing a purchase decision under conditions of uncertainty might have a commitment cost cc in this study we test cc theory using a nonhypothetical choice experiment specifically we test whether choice behavior and willingness to pay estimates differ when individuals have the option to gain present or delayed information or reverse the transaction our results suggest that the construction of a dynamic decision context can be relevant in the design of choice experiments

valuation of environmental and societal trade offs of renewable energy sources abstract use of renewable energy sources is one solution to decrease green house gas emissions and the use of polluting fossil fuels renewables differ in their environmental and societal impacts and to design sound renewable energy policy societies need to assess the trade offs between alternative sources to enable the evaluation and comparison of renewable energy production alternatives in finland this paper applies the choice experiment to elicit the monetary information on people s preferences for four renewable energy sources wind power hydro power and energy from crops and wood and considers four impacts of energy production effects on biodiversity local jobs carbon emissions and household s electricity bill the nested logit analysis reveals that higher income male gender young age and pro environmental attitude increase the probability to choose renewable energy instead of the current energy mix wind power is on average the most popular renewable energy technology but regional differences exist biodiversity deterioration should be avoided the national aggregate willingness to pay based on stated preferences rather than preferences revealed by actual market behavior for a combination of renewable energy technologies that corresponds to finland s climate change and energy policy is over 500 million euros

utility in willingness to pay space a tool to address confounding random scale effects in destination choice to the alps we compare two approaches for estimating the distribution of consumers willingness to pay wtp in discrete choice models the usual procedure is to estimate the distribution of the utility coefficients and then derive the distribution of wtp which is the ratio of coefficients the alternative is to estimate the distribution of wtp directly we apply both approaches to data on site choice in the alps we find that the alternative approach fits the data better reduces the incidence of exceedingly large estimated wtp values and provides the analyst with greater control in specifying and testing the distribution of wtp copyright 2008 oxford university press

a framework to evaluate security of supply in the electricity sector security of electricity supply soes has become a major concern for regulators and policymakers over the last decade however most work focusses either more generally on energy security or on a single fuel we develop a comprehensive but flexible framework to assess the soes for a single jurisdiction taking into the account the specificities of electricity this framework has two aims i provide a snapshot of the situation to understand current weaknesses and determine what actions are required ii capture the evolution over time to evaluate progress and identify potential problems before they materialise the framework based on an extensive literature review consists of twelve dimensions that are critical for soes we develop metrics that capture the state and evolution of each dimension this framework is intended to be a management information tool for all stakeholders aimed at organising data and structuring its analysis to enable monitoring the evolution of the soes while also functioning as an early warning system by flagging potential future problems

identifying electricity saving potential in rural china empirical evidence from a household survey in recent years there has been a fast growing body of literature examining energy saving potential in relation to electricity however empirical studies focusing on non western nations are limited to fill this gap this study intends to examine the electricity saving potential of rural households in china using a unique data set from the china residential electricity consumption survey crecs in collaboration with the china general social survey cgss conducted nationwide at the household level in rural china we use a stochastic frontier model which allows us to decompose residential electricity consumption into the minimum necessary amount of consumption based on physical characteristics e g house size house age number of televisions or refrigerators and estimate the consumption slack i e the amount of electricity consumption that could be saved which depends on various factors we find that rural households in china are generally efficient in electricity saving and the saving potential is affected by fast information feedback and social demographic characteristics instead of by the averaged electricity price or energy efficiency labelling signals in addition we find no evidence of regional heterogeneity on electricity saving potential for rural households policy implications are derived

low energy efficiency in rental properties asymmetric information or low willingness to pay abstract asymmetric information may explain low energy efficiency in rented properties energy ratings while a solution to the information problem will only lead to higher efficiency levels if renter s willingness to pay wtp exceeds landlord s investment costs using a sample of renters from one university this paper estimates this wtp using a discrete choice experiment where respondents choose from a hypothetical set of single bedroom apartments that differ according to a number of attributes including the energy rating results show that there is a strong disutility associated with the least efficient properties and that renters will pay significantly more for efficiency improvements at the lower end of the efficiency scale importantly our wtp estimates are calculated in a setting where respondents were informed about the energy rating system prior to choosing and where the rating was shown for every property therefore in order to maximise the impact of energy rating systems policymakers are encouraged to ensure that both these informational characteristics are in place

willingness to pay for energy saving measures in residential buildings this paper uses a choice experiment to evaluate the consumers willingness to pay for energy saving measures in switzerland s residential buildings these measures include air renewal ventilation systems and insulation of windows and facades two groups of respondents consisting respectively of 163 apartment tenants and 142 house owners were asked to choose between their housing status quo and each one of the several hypothetical situations with different attributes and prices the estimation method is based on a fixed effects logit model the results suggest that the benefits of the energy saving attributes are significantly valued by the consumers these benefits include both individual energy savings and environmental benefits as well as comfort benefits namely thermal comfort air quality and noise protection

the relationship between forecast dispersion and forecast uncertainty evidence from a survey data arch model this paper examines empirically the relationship between measures of forecast dispersion and forecast uncertainty from data on inflation expectations from the livingston survey series and the survey research center src survey series because the survey series do not provide probabilistic forecasts of inflation we derive measures of inflation uncertainty by modelling the conditional variance of the inflation forecast errors from the survey series as an autoregressive conditional heteroscedastic arch process the analysis is complicated by the fact that the overlap of forecast horizons for the survey series does not preclude the model s disturbance terms from displaying autocorrelation and also places a restriction on the specification for the arch measures of inflation uncertainty we estimate the model using hansen s 1982 generalized method of moments gmm procedure to account for the presence of serial correlation and conditional heteroscedasticity in the disturbance terms the results generally support the hypothesis that the measures of forecast dispersion across survey respondents are positively and statistically significantly associated with the measures of inflation uncertainty however the appropriateness of using forecast dispersion measures as proxies for inflation uncertainty is sensitive to the choice of the survey series

what makes and what does not make a real option a study of equity shares in international joint ventures this paper examines the boundaries of real options logic with an application to joint ventures jvs we distinguish between forms of uncertainty that are resolved endogenously and those that are resolved exogenously and theorize that only exogenous uncertainty will have the impact predicted by real options theory on a foreign investor s choice of how large an equity share to take in a jv we theorize that macroeconomic and institutional variables generate exogenous uncertainty whereas by contrast cultural distance and choices pertaining to corporate scope and product or process development activities involve endogenous sources of uncertainty that investors can both assess and act upon without having to wait and see using a sample of 6472 sino foreign jvs we find support for our predictions we discuss and implement proper methods to test for the existence of null effects as is relevant to establish the boundaries of a theory such as real options theory we draw implications for research and practice on jvs specifically equity share decisions which deserve more attention and real options including suitable uses and desirable extensions of the concept

stated versus revealed knowledge determinants of offsetting co2 emissions from fuel consumption in vehicle use abstract this paper examines the role of prior knowledge in offsetting co2 emissions from fuel consumption in vehicle use the main result of our econometric analysis on the basis of unique representative data from drivers license holders in the usa and germany refers to the strong discrepancy between the stated and revealed knowledge of co2 offsetting the revealed knowledge measured by the correct estimation of the costs for this offsetting practice has a positive impact on the stated purchase of corresponding offsetting credits in both countries in contrast the effect of the stated knowledge of offsetting is not robust and in some cases even negative surprisingly it cannot even be confirmed that drivers license holders who claim that they are more than sufficiently informed estimate these costs more accurately

efficient estimation methods for closed ended contingent valuation surveys closed ended contingent valuation surveys can be very useful in the evaluation of nonmarket resources respondents merely state whether they would accept or reject a hypothetical threshold amount either as payment for giving up access to the resource or as a fee for its use the authors develop a maximum likelihood procedure which exploits the variation in the threshold values to allow direct and separate point estimates of regression like slope coefficients and error standard deviations without truncation bias their illustration uses data from a survey of recreational fisherman to examine factors which influence individuals willingness to pay copyright 1987 by mit press

stability of willingness to pay for coastal management a choice experiment across three time periods a key assumption of stated preference methods is that individuals have well formed preferences that are robust over time both the discovered and constructed preference perspectives imply this is not necessarily the case there can be a large situational component to expressed preferences that add to the uncertainty of sampling error most non market valuation studies only collect data from one point in time so the degree of temporal variability cannot be tested test retest studies that provide data from two points in time generally find significant differences in preference structure and willingness to pay wtp in this study we test stability of wtp for beach erosion management using a fully ranked discrete choice experiment survey with not one but two retests over a six month period we find that stability does not improve with the additional repetition as the preference discovery hypothesis implies it might wtp confidence intervals overlap but the models are significantly different at each point in time even after allowing for variation in choice error either the survey did not facilitate sufficient preference discovery or preferences were reconstructed however respondents with high scores of self reported certainty in their choices in the first survey had significantly more stable wtp estimates

recreation demand models with taste differences over people we estimate random parameter logit models of anglers choice of fishing site the models generalize logit by allowing coefficients to vary randomly over anglers rather than being fixed the models do not exhibit the restrictive independence from irrelevant alternatives property of logit and can represent any substitution pattern estimation explicitly accounts for the fact that the variation in coefficients over anglers induces correlation in unobserved utility over trips by the same angler willingness to pay for improved fish stock and the value to anglers of specific sites are calculated from the models and compared with the estimates obtained from a standard logit model