Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73953
Authors: 
Longo, Alberto
Markandya, Anil
Petrucci, Marta
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 132.2006
Abstract: 
This paper investigates the willingness to pay of a sample of residents of Bath, England, for a hypothetical program that promotes the production of renewable energy. Using choice experiments, we assess the preferences of respondents for a policy for the promotion of renewable energy that (i) contributes to the internalization of the external costs caused by fossil fuel technologies; (ii) affects the security of energy supply; (iii) has an impact on the employment in the energy sector; (iv) and leads to an increase in the electricity bill. Responses to the choice questions show that our respondents are in favour of a policy for renewable energy and that they attach a high value to a policy that brings private and public benefits in terms of climate change and energy security benefits. Our results therefore suggest that consumers are willing to pay a higher price for electricity in order to internalize the external costs in terms of energy security, climate change and air pollution caused by the production of electricity.
Subjects: 
Non Market Valuation
Choice Experiments
Willingness to Pay
Renewable Energy
Energy Security
Greenhouse Gases Emissions
JEL: 
Q42
Q48
Q51
Document Type: 
Working Paper

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