market segmentation and willingness to pay for green electricity among urban residents in china the case of jiangsu province the objective of this study is to identify market segments and estimate the residents willingness to pay wtp for green electricity green e in china for the large scale promotion of energy projects from renewable sources that do not rely solely on energy policies based on an analysis of non use values of green e as well as the application of the contingent valuation cv method and payment card pc introduction technology the average wtp ranges from rmb 7 91 yuan month to 10 30 yuan month approximately us 1 15 1 51 month with an exchange rate of 6 83 yuan us yuan us for urban residents in jiangsu province the current work also explores the differences in demographic variables across varying wtp amounts and the different marginal effects of demographic variables at the same level of wtp the findings reveal that there are significant differences in demographic variables such as level of education household income and location of residence across the population segments moreover the finding that some respondents with high income and higher education prefer higher wtp amounts to lower wtp amounts suggests that green e is a luxury product and consequently a veblen effect exists in certain chinese market segments

assessment of public acceptance and willingness to pay for renewable energy sources in crete abstract the aim of this study is to analyse and to evaluate the citizens public acceptance and willingness to pay wtp for renewable energy sources res in crete for this purpose a contingent valuation study was conducted using a double bound dichotomous choice format to elicit people s wtp and factors affecting it residents of 1440 households all over crete were interviewed face to face major conclusions can be used as a basis for sustainable energy planning for policies and the formulation of awareness campaigns and for res investment programs and projects in order to prepare implementation conditions and enhance public acceptance of renewable energy investments and programmes mean wtp per household was found to be 16 33 to be paid quarterly as an additional charge on the electricity bill larger willingness to pay was reported by those with high family income and residence size those having a higher level of energy information and awareness concerning climatic change those who have invested in some energy saving measures and those who suffer from more electricity shortages than others

optimal allocation of energy sources for sustainable development in south korea focus on the electric power generation industry abstract national energy planning has become increasingly complex owing to a pressing need to incorporate sustainability considerations in this context we applied least cost and cost risk optimization models to allocate energy sources for sustainable development in the korean electric power generation industry the least cost model determined an electricity generation mix from 2012 to 2030 that incurs minimum generation cost to meet electricity demand the cost risk model determined electricity generation mixes in 2030 considering the risks associated with each energy source in order to lessen external risks in deriving these optimal electricity generation mixes we considered both conventional and renewable energy sources in conjunction with physical and policy constraints that realistically reflect korean circumstances moreover we accounted for co 2 and external costs within the electricity generation costs for each energy source for sustainable development in korea we conclude that a portion of the coal and gas in the electricity generation mix must be substituted with nuclear and renewable energy furthermore we found that least cost allocation is sub optimal from cost risk perspective and that it limits the adoption of renewables finally we also discuss the implications of decisions taken by the korean government regarding the electricity generation mix for next generation energy planning to achieve sustainability

is there an energy efficiency gap many analysts have argued that energy efficiency investments offer an enormous win win opportunity to both reduce negative externalities and save money this overview paper presents a simple model of investment in energy using capital stock with two types of market failures first uninternalized externalities from energy consumption and second forces such as imperfect information that cause consumers and firms not to exploit privately profitable energy efficiency investments the model clarifies that only if the second type of market failure cannot be addressed directly through mechanisms such as information provision energy efficiency subsidies and standards may be merited this chapter therefore reviews the empirical work on the magnitude of profitable unexploited energy efficiency investments a literature which frequently does not meet modern standards for credibly estimating the net present value of energy cost savings and often leaves other benefits and costs unmeasured these problems notwithstanding recent empirical work in a variety of contexts implies that on average the magnitude of profitable unexploited investment opportunities is much smaller than engineering accounting studies suggest finally there is tremendous opportunity and need for policy relevant research that utilizes randomized controlled trials and quasi experimental techniques to estimate the returns to energy efficiency investments and the welfare effects of energy efficiency programs

residential consumers in the cape peninsula s willingness to pay for premium priced green electricity a number of studies have explored the willingness i e stated willingness as opposed to actual willingness of consumers to pay a premium for green electricity in developed countries however little is known about how this translates into an emerging economy context this study investigates the level of willingness of residential households in south africa s cape peninsula to pay a premium for electricity from renewable energy it methodologically drew on recent contributions in the literature on norm motivated behaviour used to identify testable factors that could influence residential consumers willingness to pay wtp interestingly the study found a significant positive link between household income and wtp for green electricity contrary to the findings of some previous studies not only are higher income households more likely to pay a premium but typically they are also willing to pay a bigger premium it was also further established that the view that green electricity is reliable involvement in the recycling of waste and the belief that everyone should contribute to green electricity generation drive the wtp

estimating willingness to pay for renewable energy in south korea using the contingent valuation method the importance of renewable energy as a response to climate change is universally acknowledged however its successful implementation requires public approval and cooperation this study aims to identify the level of renewable energy acceptance in korea by estimating korean consumers additional willingness to pay wtp using the contingent valuation cv method which is the most widely used to analyze consumer preferences the estimation results indicate that korean consumers are willing to pay an additional usd 3 21 per month for electricity generated with renewable energy however wtp in korea is low relative to other advanced nations indicating that these values could be influenced through policies aimed at improving knowledge and acceptance of renewable energy sources among korean consumers

new evidence on purchasing power parity from 17 oecd countries there is a large literature that investigates whether or not real exchange rates are stationary in an attempt to unravel support for purchasing power parity ppp at best the empirical results are mixed this paper applies a unit root test that allows for a simultaneous structural break in the intercept and slope shown by sen 2003 to minimize power distortions to examine ppp for 17 oecd countries our results on ppp are mixed when the real exchange rate is based on the us dollar evidence is found of ppp for only france portugal and denmark when the real exchange rate is based on the deutschmark we find evidence of ppp for austria belgium norway spain netherlands switzerland and denmark

a portfolio risk analysis on electricity supply planning abstract conventional electricity planning selects from a range of alternative technologies based on the least cost method without assessing cost related risks the current approach to determining energy generation portfolios creates a preference for fossil fuel consequently this preference results in increased exposure to recent fluctuations in fossil fuel prices particularly for countries heavily depend on imported energy this paper applies portfolio theory in conventional electricity planning with taiwan as a case study the model objective is to minimize the risk weighted present value of total generation cost both the present value of generating cost and risk variance of the generating cost are considered risk of generating cost is introduced for volatile fuel prices and uncertainty of technological change and capital cost reduction the impact of risk levels on the portfolio of power generation technologies is also examined to provide some valuable policy suggestions study results indicate that replacing fossil fuel with renewable energy helps reduce generating cost risk however due to limited renewable development potential in taiwan there is an upper bound of 15 on the maximum share of renewable energy in the generating portfolio in the meantime reevaluating the current nuclear energy policy for reduced exposure to fossil fuel price fluctuations is worthwhile

coal nuclear and renewable energy policies in germany from the 1950s to the energiewende over the last 50 years german energy policy has ranged from strong enthusiasm for both coal and nuclear energy to deep skepticism the most dramatic changes with respect to energy policies have occurred as a response to nuclear accidents yet the accidental and unintended effects of coal policies are also important in influencing the trajectory the newly emerging climate debate prevented the coal industry from acting as a substitute for the diminishing share of nuclear power in 2011 the conservative government announced the energiewende energy transformation and decided to reduce the amount of fossil fuels from 80 of the energy supply to 20 by 2050 however while the verdict on nuclear was unequivocal with a final phase out date of 2022 the share of coal in the electricity market did not decrease and the amount of carbon dioxide released into the air slightly increased from 2011 to 2013 there are growing conflicts over the immediate costs and practicalities of coal replacement consequently the future of coal in germany is still relatively open and contested

analyzing korean consumers latent preferences for electricity generation sources with a hierarchical bayesian logit model in a discrete choice experiment generally consumers use electricity without considering the source the electricity was generated from since different energy sources exert varying effects on society it is necessary to analyze consumers latent preference for electricity generation sources the present study estimates korean consumers marginal utility and an appropriate generation mix is derived using the hierarchical bayesian logit model in a discrete choice experiment the results show that consumers consider the danger posed by the source of electricity as the most important factor among the effects of electricity generation sources additionally korean consumers wish to reduce the contribution of nuclear power from the existing 32 11 and increase that of renewable energy from the existing 4 32

a triangular purchasing power parity hypothesis we propose a triangular purchasing power parity ppp analytical framework which is theoretically justified and empirically validated the mechanisms and channels through which a seemingly mystery relationship emerges are deliberated and examined which renders significant implications to international monetary economics finance and business the de facto peg of the rmb to the us dollar together with trade activities and arrangements causes a triangular ppp effect that the dollar euro exchange rate is not a function of the relative prices in the us and euroland instead it becomes a function of the relative prices in the people s republic of china prc and euroland the results are supportive of triangular ppp in a three economy world of the us euroland and prc

was it real the exchange rate interest differential relation over the modern floating rate period in this paper we explore the relationship between real exchange rates and real interest rate differentials in the united states germany japan and the united kingdom contrary to theories based on the joint hypothesis that domestic prices are sticky and monetary disturbances are predominant we find little evidence of a stable relationship between real interest rates and real exchange rates we consider both in sample and out of sample tests one hypothesis that is consistent with our findings is that real disturbances such as productivity shocks may be a major source of exchange rate volatility this paper investigates the empirical relationship between major currency real exchange rates and real interest rates over the modern post march 1973 flexible rate experience the exchange rates examined here include the dollar mark dollar yen and dollar pound rates our two major findings are as follows first the data do not indicate a strong correspondence between real interest rate differentials short term or long term and real exchange rates this finding appears to conflict with the predictions of most monetary and portfolio balance models of exchange rate determination though the conflict can be substantially reconciled if aggregate disturbances are primarily real in nature i e changes in productivity tastes etc it is true that in many cases the sign of the estimated exchange rate interest rate differential relationship is consistent with the possible predominance of financial market disturbances but the relationship is not stable enough to be statistically significant second although one does find some evidence of a unit root in both real exchange rates and long term but not shortterm real interest differentials these two series do not appear to be linearly cointegrated hence the nonstationarity or near nonstationarity in the two series cannot be attributed to the same factor in section i we briefly describe a class of small scale monetary models of exchange rate determination the importance of this class of models for empirical work derives from its strong predictions about how the exchange rate will move

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

can renewable energy be financed with higher electricity prices evidence from a spanish region abstract in this paper we estimate the willingness to pay for mix of renewable sources of electric power by means of a discrete choice experiment survey conducted in spain in 2010 two main categories of power supply attributes are explored source of renewable power wind solar and biomass and the origin of such power the findings suggest that most consumers are not willing to pay a premium for increases in the shares of renewable in their electricity mix for two of the three renewable sources considered wind and biomass an increase of the renewable mix would require a discount instead we record positive willing to pay for increases in the share of both solar power and locally generated power however preferences for types of renewable solar and wind are found to be heterogeneous by classifying respondents in two groups according to the implied importance of the share of renewable sources in their power mix we identify a market segment consisting of 20 of respondents that could promote renewable energy in the absence of subsidies this is because such a segment shows willingness to pay higher than the current feed in tariffs

what do customers want from improved residential electricity services evidence from a choice experiment abstract improvements in customer satisfaction as well as product service quality represent a common objective of all businesses and electricity services are no exception using choice experiments and a mixed logit model this study quantitatively analyzes customers preferences and their marginal willingness to pay for improved residential electricity services the study provides an ex ante evaluation of customers acceptance of hypothetical electricity services according to the results customers consider the electricity bill and the electricity mix as the two most important attributes when choosing their electricity services customers are willing to pay 2 2 more in the average electricity bill an additional monthly electricity bill of krw 1 064 usd 0 96 for a significant increase in the share of renewable energy which is far less than the actual cost of achieving this renewable target therefore it is better to maintain the current electricity mix in principle and the renewable share should be gradually expanded instead of making a sudden change in the electricity mix in addition customers are willing to pay krw 6 793 usd 6 15 more to reduce blackouts once in a year and krw 64 year usd 0 06 year to reduce a minute of each blackout

cointegration tests of purchasing power parity the case of swiss exchange rates abstract this paper tests purchasing power parity ppp as a long run equilibrium condition by examining the long run relationshiop between exchange rates and wholesale price indices using cointegration tests this paper avoids some of the problems of previous cointegration tests of ppp by using more precise data pretests and by not imposing a priori restrictions upon the cointegrating vector of the nine combinations of swiss exchange rates and price indices examined cointegration is detected in seven cases thus supporting ppp as a long run equilibrium jel f31 c32

deviations from purchasing power parity under different exchange rate regimes do they revert and if so how abstract we propose an empirical model for deviations from long run purchasing power parity ppp that simultaneously accounts for three key features i adjustment toward ppp may occur via nominal exchange rates and relative prices at different speeds ii different exchange rate regimes may generate regime shifts in the structural dynamics of ppp deviations iii nonlinear reversion toward ppp in response to shocks this empirical framework encompasses and synthesizes much previous empirical research using over a century of data for the g5 countries we provide evidence that long run ppp holds the relative importance of nominal exchange rates and prices in restoring ppp varies over time and across different exchange rate regimes and reversion to ppp occurs nonlinearly at a speed that is fairly consistent with the nominal rigidities suggested by conventional open economy models

power sector investment risk and renewable energy a japanese case study using portfolio risk optimization method the conventional pricing mechanism used for electricity systematically hides huge investment risks which are embedded in the overall cost of production although consumers are often unaware of these risks they present a large financial burden on the economy this study applies the portfolio optimization concepts from the field of finance to demonstrate the scope of greater utilization of renewable energies re while reducing the embedded investment risk in the conventional electricity sector and its related financial burden this study demonstrates that re investment can compensate for the risks associated with the total input costs such costs being external volatilities of fossil fuel prices capital costs operating and maintenance costs and the carbon costs by means of example this case study shows that japan could in theory obtain up to 9 of its electricity supply from green sources as compared to the present 1 37 based on the utilization of a portfolio risk analysis evaluation explicit comparison of the monetary values of the investment risks of conventional and renewable energy sources shows that renewable energies have high market competitiveness the study concludes with a recommendation that as a business objective investors would benefit by focusing on electricity supply portfolio risk minimization instead of cost this could also inherently increase the supply of renewable energy in the market

valuing energy policy attributes for environmental management choice experiment evidence from a research institution abstract many governments firms institutions and individuals have become increasingly cognizant of their impact on the environment most notably with respect to global climate change coupled with the possibility of future regulations aimed at curbing greenhouse gas emissions firms and institutions have begun to critically evaluate their own carbon footprint this paper examines the preferences of stakeholders within a large academic institution for attributes of alternative greenhouse gas ghg reduction strategies the attributes considered by constituents include the fuel portfolio mix effort for conserving energy use carbon emissions reduction timeframe for emissions reduction to be achieved and cost we use a choice experiment technique that enables the examination of greenhouse gas reduction program attribute preferences across three constituent groups the results show that each of the constituent groups have a positive wtp for carbon emissions reductions and prefer investments in reductions in the shorter rather than longer term the results also suggest differences between the constituent groups in their wtp for types of fuels in the fuel portfolio finally we use the results to examine the welfare implications of different combinations of the policy attributes that coincide with alternative ghg program strategies

identifying the factors affecting the willingness to pay for fuel efficient vehicles in turkey a case of hybrids this paper aims to determine the factors that have an impact on the consumers willingness to pay a premium for hybrid automobiles in turkey a web based random survey was conducted in different regions of turkey a questionnaire was administered to 1983 participants in january march of 2009 the questionnaire was prepared by taking the issues raised in various sources into account an ordered probit model was used to meet the objective results show that variables such as income gender education concerns about global warming number of automobiles importance of automobile performance risk preference attitude toward the alternative energy sources have an impact on the consumers willingness to pay a premium for hybrids findings suggest that consumers who have high income higher educational level and concerns about the global warming are more likely to pay a premium for hybrids this study is expected to make important contributions to the current literature related to the consumers willingness to pay for hybrids by providing a research study from a developing country s perspective results of this study also make important contributions to the policy and decision makers environmental groups and automotive industry

eliciting public preference for nuclear energy against the backdrop of global warming one of the most important issues related to sustainability is to reduce the use of fossil fuels due to the reduction in greenhouse gases ghg emission nuclear power results in low carbon emissions and is thus important to mitigating the adverse effects of global warming and climate change however the downside of nuclear power cannot be overlooked and consequently nuclear power is a controversial issue in many countries around the world thus an important question concerns how people should support nuclear power do the climate and energy security benefits of nuclear power outweigh its risks and costs therefore we use a modified double bounded contingent valuation model to explore the attitudes and the willingness to pay wtp of a country in order to demonstrate its implications for policy we confirm that supporters and opponents of nuclear power are balanced both in terms of their numbers and in terms of their wtp the policy implication is that people do not support any dramatic increase or reduction in nuclear power and that nuclear power should still be an important means of generating electricity in taiwan the current share of nuclear power in electricity generation of 20 should be maintained in the near future

household willingness to pay for green electricity in slovenia abstract this paper analyses the willingness to pay for electricity generated from renewable energy sources in slovenia the results confirm that age household income education and environmental awareness play the most important role in explaining household attitudes to green electricity programmes while the willingness to participate in green electricity programmes is influenced by education and environmental awareness the willingness to pay for green electricity predominantly depends on household income the results imply that green marketing should be accompanied by awareness raising campaigns and should target younger well educated and high income households the expressed median willingness to pay is found to exceed the current level of mandatory charges for green electricity nevertheless recent increases in final electricity prices might have already exhausted the capacity for additional voluntary contributions