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Environmental and societal trade-offs of renewable energy sources

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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.

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... Sociodemographic features (e.g., age, education, and income) [33][34][35][36][37][38][39][40], ‚ Psychographic features (e.g., attitudes and values) [36,[41][42][43][44][45][46]; ...
... Market design/payment vehicle (voluntary payments through purchasing green electricity vs. mandatory payment through taxes and levies) [33,41,[47][48][49][50][51]; Characteristics of the provider (e.g., large utility, local utility, cooperative) [52][53][54]; Product characteristics (renewable technology, share of renewables in the product, local production, labels and other features) [34][35][36]38,47,52,[55][56][57][58][59][60][61]. ...
... Research on green electricity points to important connections between product features and WTP. Consumers in this market seem to have clear preferences in the selection of renewable technologies with solar being the most popular and bioenergy and big hydropower the least [34,35,47,52,57,59]. Renewables from local production seem to elicit a higher WTP than those from non-local sources [52,53]. ...
Article
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In the effort to combat global warming, renewable energies play a key role. However, most efforts are still focused on the electricity market, so renewables remain underrepresented in the heat market. Biomethane derived from biogas is an intriguing option for using renewable energy to generate heat in residential homes. However, biomethane comes at a significantly higher cost than natural gas, meaning providers have to ask a price premium from consumers. Determining a pricing strategy is thus of crucial importance. Besides cost, providers have to consider consumers' willingness-to-pay (WTP) for the product. We propose that they could draw on existing research on WTP for green electricity, albeit with some important modifications and scarce research on biomethane. To explore this proposition, we performed a first-of-its-kind analysis of providers' pricing strategies for biomethane, using both providers' published data and data provided in response to e-mail queries. Based on the features and prices of 165 biomethane-based gas products for private households in Germany, we find that features that could, according to existing research, elicit a higher WTP are not priced accordingly. As the consumer market for biomethane is still in its early development, our results suggest opportunities for providers to ask higher prices for certain biomethane-based gas products.
... This article aims to answer the following research question: What policy and contextual factors influence the diversification of investments in renewable energy production? We have selected Finland as a case country which has a traditionally large share of renewable energy production by the pulp and paper industry (i.e., a strong element of path dependence), but where it has been recognized that new sources of investment are needed to meet the country's RES targets (Kosenius and Ollikainen, 2013). Finland is a small, unitary country enabling a relatively granular case study. ...
... Bioenergy is the only renewable energy source that has consistently featured on the policy agenda since the 1970s (Kivimaa and Mickwitz, 2011), due to the abundance of forest resources. Bioenergyin particular from black liquor and forest residues used by the pulp and paper industryhas made up a fourth of the country's total energy supply (Kosenius and Ollikainen, 2013). Additional growth has been expected in small-scale plants for heat or CHP production (Kosenius and Ollikainen, 2013), due to years of low domestic investment in pulp and paper production. ...
... Bioenergyin particular from black liquor and forest residues used by the pulp and paper industryhas made up a fourth of the country's total energy supply (Kosenius and Ollikainen, 2013). Additional growth has been expected in small-scale plants for heat or CHP production (Kosenius and Ollikainen, 2013), due to years of low domestic investment in pulp and paper production. ...
Article
This article addresses the investment gap in renewable energy sources identified by several authors. Examining the case of a country, Finland, which introduced policy measures to diversify its renewable energy portfolio, we analyse the development of investments in renewable heat and power in response to new policy measures and contextual factors during the downturn period 2009–2013. We investigate investor heterogeneity, i.e., the diversity of logics employed by different types of RES investors. In spite of a severe financial recession, we find an emergence of new sources of investment. Among these new investor types, we find diversity in investment drivers and available options. These include investors mobilized by the feed-in-tariff to seek profitable targets and investors such as real estate owners investing in heat pumps for their own use and benefiting from low interest rates. We find that the diversification of investors supports the diversification in RES sources, and brings in new investors undeterred by the financial downturn. Our findings imply that policy-makers should recognize that the responses to distinct incentives and pressures vary by investor types. This also means that a mix of policies is required to maximize the contribution of different sectors to filling the renewable energy investment gap.
... The source of renewable electricity can influence the consumer's preference when choosing a green electricity tariff. In this context, different studies indicate that most consumers are generally willing to pay extra for green electricity, but the amount of this additional cost varies for different RES [16,20,28,[43][44][45][46]. Ek [44] found that Swedish households generally favor the production of wind energy. ...
... In a more recent study, Kaenzig et al. [16], however, found that the German consumer has a preference order, in which pure wind energy is valued above a green energy mix, which in turn is valued above a mix of renewable energies, coal and nuclear energy. Kosenius and Ollikainen [46] showed for the Finnish case, that energy from plants, which can also be used as food, is the least frequently chosen energy option compared to energy production from wood, wind or water. In a meta-study of the recent literature, Ma et al. [20] described that consumers have a higher WTP for solar and wind energy than for energy from biomass. ...
... The literature reveals that energy from biomass is a component of the green electricity portfolio which is often negatively viewed by consumers [43,45,46]. In the German context, energy from biogas in particular is often criticized [16,30], but there is no study that investigates whether consumer rejection of biogas can lead to the decision not to switch to green electricity. ...
Article
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Background In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by switching to green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers would hypothetically decide to switch to a green electricity tariff. Methods A quota-representative online survey including a discrete choice experiment with 371 German private households was conducted in 2016. For the econometric analysis, a generalized multinomial logit model in willingness-to-pay space was employed, enabling the estimation of WTP values to be as realistic as possible. Results The results show that consumers’ decision whether or not to make the switch to green energy is mainly influenced by the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exist in Germany. Conclusions The findings indicate that politics should focus on supporting wind and solar energy as German consumers prefer these sources over biogas. As the results suggest, the EEG levy is a reason why consumers have lower WTP for switching to a green tariff. Therefore, a switching bonus with a specifically “framed” bonus in the amount of the current EEG levy could be a promising strategy for the increase of green energy tariff acceptance. Furthermore, attention should be given to psychological and behavioral aspects, as the results indicate that these factors influence the consumer’s choice for a green electricity tariff.
... Secondly, inhabitants can play a role in the implementation phase of RE plans. Their involvement could have different features depending on civic and political participation and activity of inhabitants, age [56], gender [57], income [56], composition and size of families [58], perceptions of injustice [59], and cultural imageries [60]. For example, income influences the acceptance and the availability to adopt or support RE technologies and energy efficiency measures [59,24]. ...
... Morphology and relationships between infrastructures and actors [36] can influence the spatial-social organization and the attitude of people [12]. Territories with different morphological features have different power relationships [12], and territorial cohesion is able to redistribute this power and strengthen collaborations [26].Urban and ruralterritories have different power relationships on different issues [81], different potentialities [11] and needs [82], and different inhabitant preferences [57] based on their features i.e., inhabitant density, urban, agriculture, and forest land covers [12], elevation [81], surface of territory, connectivity through highway, street, and railway, and presence of natural parks. Rural areas are more isolated than urban ones and connectivity from railway, streets, and highways are indicators of territorial connectivity or isolation [18,43].Land coversdetermine the relationship between society and space and the use that a local population makes of their land. ...
... Focusing on the land covers and uses of a territory, semi-urban or rural characteristics should address different energy planning aspects, because they have different RE potentials [11] and different stakeholder and inhabitant preferences [82,57]. ...
Article
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With the aim of proposing recommendations on how to use social and territorial specificities as levers for wider achievement of climate and energy targets at local level, this research analyses territories as sociotechnical systems. Defining the territory as a sociotechnical system allows us to underline the interrelations between space, energy and society. Groups of municipalities in a region can be identified with respect to their potential production of renewable energy by means of well-known data-mining approaches. Similar municipalities linking together can share ideas and promote collaborations, supporting clever social planning in the transition towards a new energy system. The methodology is applied to the South Tyrol case study (Italy). Results show eight different spatially-based sociotechnical systems within the coherent cultural and institutional context of South Tyrol. In particular, this paper observes eight different systems in terms of (1) different renewable energy source preferences in semi-urban and rural contexts; (2) different links with other local planning, management, and policy needs; (3) different socio-demographic specificities of individuals and families; (4) presence of different kinds of stakeholders or of (5) different socio-spatial organizations based on land cover. Each energy system has its own specificities and potentialities, including social and spatial dimensions, that can address a more balanced, inclusive, equal, and accelerated energy transition at the local and translocal scale.
... Scholars have also drawn different conclusions about the correlation between supporting to green power and households' energy structure. Kosenius and Ollikainen (2013) proved that respondents had the highest WTP for wind power. ...
... Reduce the difficulty when answering questions (Zhang and Wu, 2012); Describe each respondent's WTP distribution (Bigerna and Polinori, 2011) Affected by the bidding price Choice experiment Estimate the marginal valuation (Kosenius and Ollikainen, 2013); Deliver social externality values (Boxall et al., 1996) Complex question set 2 In this paper, it is assumed that the proportion between the individual's expenditure on electric power and his total income is exogenous and fixed. Therefore, the total income level may be used to reflect the budget constraint of the individual for his or her expenditure for electricity. ...
... Scholars have also drawn different conclusions about the correlation between supporting to green power and households' energy structure. Kosenius and Ollikainen (2013) proved that respondents had the highest WTP for wind power. ...
... Reduce the difficulty when answering questions (Zhang and Wu, 2012); Describe each respondent's WTP distribution (Bigerna and Polinori, 2011) Affected by the bidding price Choice experiment Estimate the marginal valuation (Kosenius and Ollikainen, 2013); Deliver social externality values (Boxall et al., 1996) Complex question set 2 In this paper, it is assumed that the proportion between the individual's expenditure on electric power and his total income is exogenous and fixed. Therefore, the total income level may be used to reflect the budget constraint of the individual for his or her expenditure for electricity. ...
Article
Due to higher production cost, the market price for green power is higher than that of thermal power. Thus,competitiveness and development of green power should be achieved through subsidies which are paid by final users. Shanghai is the most developed city in China. The research on green power of Shanghai will supply key experience for other cities. In this paper,we use Double Bounded Contingent Value Method ( DB-CVM) to estimate household’s willingness to pay for green power and its influencing factors. It shows that consumer’s willingness to pay for green power is affected by factors such as age,education level,income and sensitivity to the environment pollution. Younger residents with higher income level and education level have higher WTP for green power. Comparing to the household living in their own house,the households who rent an apartment have a lower WTP. What’s more,with a deeper understanding of the electricity price and pollution level,residents will pay more for green power. Based on the total households’electricity consumption and the total green power generation ratio of Shanghai in 2016,our result shows that the subsidy for green power from the household could be 334 million RMB yuan. China has greater potential to promote the development of green power through supporting policies from demand side.
... Different energy generation technologies (including RES) feature different advantages and shortcomings. Compared to the conventional energy sources, RES offer higher possibilities for improvement in sustainability (Dombi et al., 2014;Stigka et al., 2014), yet the obvious disadvantage is the higher costs associated with implementation of such technologies and uncertainty regarding the environmental impacts (Kosenius and Ollikainen, 2013). Considering such RES as wind power, their presence might impact the biodiversity and reduce the quality of life in the surroundings of the installations due to noise. ...
... The assessment of sustainability of RES can follow different approaches (sets of criteria, techniques applied, data used) and comprise multiple different RES technologies themselves. Obviously, different renewables are associated with different environmental and economic performance as they have entered different stages of development (Kosenius and Ollikainen, 2013;Turkenburg et al., 2000). This section discusses the theoretical preliminaries for sustainability assessment and their impact on multi-criteria analysis of RES sustainability. ...
Article
The planning of sustainable energy systems has been acknowledged as a multi-criteria decision making (MCDM) problem. However, most of the earlier literature has considered public and private impacts of the energy generation technologies in a stand-alone way. In this paper, it is argued that the sustainable planning of the energy systems and components thereof should involve both types of impacts simultaneously in the MCDM. To serve this aim, MCDM framework which incorporates the two types of information in the analysis, namely expert assessments for the public impacts and the willingness to pay measure for the private ones, is devised. The proposed MCDM framework involves the three MCDM techniques – the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), the Evaluation Based on Distance from Average Solution (EDAS) and the weighted aggregated sum product assessment (WASPAS) – which represent different principles of aggregation. The integrated MCDM framework is then applied in the context of Lithuania to choose the most promising micro-generation technology. More specifically, solar thermal, solar panel, biomass boilers and micro wind installations are considered. The Monte Carlo simulation is implemented in order to ensure the robustness of the results assuming that the underlying weights are perturbed.
... For the moment, the development of biomass energy lacks a good model, and biogas plants may be difficult to sustain from a financial perspective [25]. However, using biogas to generate electricity can effectively eliminate agricultural and forest residues immediately, thereby reducing the carbon emissions resulting from the direct combustion of field residues, decreasing the risk of potential fires and pests to environmental damage [26][27][28][29]. Biogas production is one of the many methods for sustainable utilization of waste resources to produce fuels without increasing carbon dioxide in the environment [16], which can be used to alleviate global warming, energy security, and waste management [17]. ...
... For the moment, the development of biomass energy lacks a good model, and biogas plants may be difficult to sustain from a financial perspective [25]. However, using biogas to generate electricity can effectively eliminate agricultural and forest residues immediately, thereby reducing the carbon emissions resulting from the direct combustion of field residues, decreasing the risk of potential fires and pests to environmental damage [26][27][28][29]. ...
Article
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The problem of low efficiency of coal mine methane utilization is caused by the concentration of methane of less than 10%, or a concentration that varies dramatically directly emitted into the atmosphere. This work deals with the concept of a co-production system that blends lean methane and biogas to produce electric energy. It is recommended to add the biogas generated by straws around the mines in a controlled manner to the lean methane flow to obtain the desired gas concentration in order to generate electricity. Potential electricity generation and reduced greenhouse gas emissions were also evaluated. The result shows that the co-production system can significantly improve the utilization efficiency of lean methane in coal mines; the average use of pure methane in three coal mines is 0.18, 1.12, and 5.32 million m3 every year, respectively, and the emission reduction effect of carbon dioxide (CO2) equivalent is, respectively, 3081, 18,796, and 89,050 tons. The electricity generated and the economic environmental benefits of the co-production system are remarkable, and it has economic feasibility and broad perspectives for popularization. It not only has the advantage of improving the utilization rate of methane and biomass and providing power supply and heat source for mines, but also has practical significance in terms of saving energy, reducing environmental pollution, adjusting the energy structure, and achieving the target of carbon emission peak and carbon neutrality.
... The negative sign of the cost coefficient in both models is an indicator that as utility decreases as the price for renewable energy projects increases, which is consistent with economic theory. Kosenius and Ollikainen (2013) noted that reluctance to pay more for renewable energy may not necessarily be because of opposition to renewable energy production, but due to other unknown factors. To further investigate the preference for the attribute levels among gender differences, we considered the socio-economic variable gender as an interaction effect for impact on environment and ownership attributes. ...
Article
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Rwanda has seen impressive economic growth in the past few years resulting from policy driven initiatives. However, one of the key challenges to economic development in Rwanda has been the provision of reliable and cost-effective energy. As a result, the country has planned to expand its renewable energy portfolio to meet its energy demand and mitigate greenhouse gas (GHG) emissions. Meeting these goals requires a robust policy framework that considers the perspective of the public. Moreso, for women who have been disproportionately affected by climate change especially in developing countries. Gender equality is a key for the Rwanda strategy as gender gaps remain a barrier to equal benefits from energy access to all. Several challenges abound in providing access to electricity and reducing the dependency on wood fuel for cooking, hence deliberate effort needs to be made to ensure gender responsiveness in energy programs and policies. This study applied a choice experiment analysis to determine how renewable energy attributes (type of energy, ownership, impact on environment, distance and visibility, community job creation and renewable energy tax) impacts public willingness to pay for renewable energy development in Rwanda. A nationwide survey was conducted on 1,006 households from which 58.35% were women. We applied both the conditional logit (MNL) and random parameter logit (RPL) framework. We found that the Rwandan public has a high utility for the following issues: environmental impact, distance and visibility, and type of renewable energy, respectively. Further analysis focused on the gendered impacts of renewable energy revealed that women had the strongest preference for interventions with low impact on the environment. From a policy standpoint women's input should be incorporated in future decision-making processes through public participation to guide policymakers in developing beneficial renewable energy programs.
... Production technology (Aravena et al., 2012;Borchers et al., 2007;Burkhalter et al., 2009;Ebers and Wüstenhagen, 2016;Farhar and Houston, 1996;Goett et al., 2000;Herbes et al., 2015;Kaenzig et al., 2013;Kalkbrenner et al., 2017;Kosenius and Ollikainen, 2013;Ma and Burton, 2016b;Navrud and Gronvik Braten, 2007;Rowlands et al., 2002;Sauthoff et al., 2017;Tabi et al., 2014;Vecchiato and Tempesta, 2015) Hydro (%) Wind (%) PV (%) Biogas (%) ...
Article
With state-led support being only temporary, attention has turned to retail electricity markets to provide long-term support for renewable electricity. Past research has focused on consumer preferences for green electricity, i.e. the demand side. We investigated the supply side by analyzing what suppliers selling green retail electricity products in the UK, Germany, France and Italy actually provide. Through content analysis of the online data provided by these companies, we found that most products in Germany and France rely on Scandinavian hydropower. Since almost all of these plants have been operating for decades, these products today cannot be said to effectively drive new renewable capacities. Products in the UK and Italy rely on sources which already have state-led support and thus also do not drive the expansion of renewables. In fact, none of the four countries has established a policy framework that successfully fosters the development of a voluntary market for green electricity capable of driving the expansion of renewables. Alignment between sustainable energy policy objectives, consumer demand, and supply-side offerings in a voluntary market might be improved by empowering consumers through a simplified and possibly state-led labeling scheme that focuses on environmental impact and includes minimum standards for performance.
... While the mean values of all socio-demographic characteristics do not differ much across treatments, it is at the same time visible that the complete sample comprises a large share of respondents with a university degree. This indicates that the sample is biased towards higher education levels, a problem which has previously been reported in other studies using online surveys (e.g. Kosenius and Ollikainen 2013; Meyerhoff, Angeli, and Hartje 2012). The same issue is also pointed out by Lindhjem and Navrud (2011) in their comparison of Internet panels to other survey modes. ...
Article
This research concerns the effect of consequentiality and trust in institutions on willingness to pay estimates towards the expansion of renewable energy in Germany. We use four information treatments which differ in terms of the information participants received prior to a discrete choice experiment. Treatments differ with respect to a consequentiality device and the institution which would be responsible for providing the good under evaluation. After finishing the choice tasks, respondents stated their perceived consequentiality and trust in institutions. We find perceived policy consequentiality to be strongly associated with the trust individuals have in both providing institutions. Moreover, compared to the treatments which did not highlight the consequences of the survey, participants are more inclined to perceive their responses to be at least somewhat consequential when the consequentiality device was presented. However, willingness to pay estimates do neither differ across treatments nor by the level of perceived consequentiality. We speculate that as the expansion of renewable energy is strongly debated with the public having a wide range of beliefs and political views, the requirements for consequential choices are not met.
... There are currently no peer reviewed studies in Finland that have assessed the effects of wind power on landscape in monetary terms. Kosenius and Ollikainen (2013) show that wind power is the favourite renewable energy source for the Finnish people, but the study does not include landscape effects as an attribute of the different types of energy production. Janhunen et al. (2014) study attitudes towards wind power among second home owners and locals, but do not elicit economic values nor focus on landscape impacts. ...
Technical Report
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Undesirable landscape changes, especially from large infrastructure projects, may give rise to large welfare losses due to degraded landscape experiences. These losses are largely unaccounted for in Nordic countries’ planning processes. There is a need to develop practical methods of including people’s preferences and the value of landscape impacts in policy assessments and decision-making. The project aims to explore how the ecosystem service approach and values of landscape experiences can be better incorporated in actual cases. The project developed a two-step approach to assess, value and incorporate landscape impacts and tested these in case studies based on EIA documentation. We found that despite the lack of information generated in the EIAs, the step-wise method significantly improved upon evidence and conclusions of how people are impacted due to landscape changes.
... The link between energy, economic development, and carbon release is a critical research topic [2,3]. The ongoing regional adaptability of Renewable Energy Sources (RES) to national energy mixes attracted global interest, including that of countries such as Greece [4][5][6][7], Turkey [8], Spain [9,10], Ukraine [11], Western Europe [12][13][14][15], Japan [16], and China [17,18]. ...
Article
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The aim of this paper is to analyze and evaluate the use of Renewable Energy Sources (RES) and their contribution to citizens’ life quality. For this purpose, a survey was conducted using a sample of 400 residents in an urban area of the Attica region in Greece. The methods of Principal Components Analysis and Logit Regression were used on a dataset containing the respondents’ views on various aspects of RES. Two statistical models were constructed for the identification of the main variables that are associated with the RES’ usage and respondents’ opinion on their contribution to life quality. The conclusions that can be drawn show that the respondents are adequately informed about some of the RES’ types while most of them use at least one of the examined types of RES. The benefits that RES offer, were the most crucial variable in determining both respondents’ perceptions on their usage and on their contribution to life quality.
... 2 In undertaking this DCE, the set of attributes employed take account of societal tradeoffs such as job creation (e.g. Colombo et al. 2005;Longo et al. 2008;Kosenius and Ollikainen 2013). Given the importance of the O&G sector, we considered it important to ask respondents not only to think about attributes that have private costs and benefits, but also attributes that have strong social consequences, including unemployment and poverty. ...
Article
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We examine Nigerian preferences for the mitigation of negative impacts associated with oil and gas production using a discrete choice experiment. We analyse the data using a Bayesian ‘infinite mixtures’ model, which given its flexibility can approximate an array of existing model specifications including the mixed logit and finite mixture specifications. The application of this model to our data suggest multimodality in the marginal willingness to pay distributions associated with mitigation policy characteristics. Individuals are willing to pay for mitigation of negative impacts, but are not necessarily willing to trade-off very large increases in unemployment or poverty to achieve these benefits.
... Peat, in particular, loaded highly both in fossil energy and bioenergy factors. The ambivalence towards bioenergy stems in part from its positive significance for the rural economy, and more broadly for the Finnish economy (Kosenius and Ollikainen, 2013), and from the way it threatens to increase overall greenhouse gas emissions from Finland (Helin et al., 2016). ...
Article
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Achieving a sustainable energy transition is crucial for mitigating climate change. Citizens’ acceptance of the transition is important for it to succeed. We explored citizens’ images of the future energy forms and energy system in Finland, and the drivers of a sustainable energy transition. The data gathered with an online questionnaire targeting an adult population 17-75 years of age (N=1,012) were analysed with exploratory factor analysis and multiple linear regression. Four dimensions of future energy forms were identified: next-generation renewables, fossil energy, bioenergy, and established renewable vs. nuclear energy. Four dimensions of the future energy system were also identified: renewing the energy market, domestic power, small-scale producers, and consumer awareness. Five transition drivers were likewise identified: mainstreaming renewable energy, international actors, individual actions, changing values and economy, and emancipatory change. Mainstreaming renewable energy emerged as the key driver of transition, followed by individual actions. Generally, the sustainable energy transition was strongly supported by citizens’ images, but different socio-economic groups preferred somewhat different images. Thus, the diversity of consumers’ and citizens’ roles in the transition needs to be acknowledged and encouraged in legitimate national energy policies.
... The respondents were assumed to select their most preferred alternative based on the attributes their preferred the most [70] without revealing the real alternative. As CE confronts respondents with an array of questions on choosing over X or Y represented by corresponding sets of the values of attributes [71], choice experiments are well suited for revealing the trade-offs between different RES technologies which are not explicitly described in a questionnaire [72]. ...
Article
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A wide range of climate change mitigation policies have been developed around the world and these policies have become one of the major concerns, however there is still debate among scientists about what are the main external benefits and how to account for them and prepare effective climate change mitigation policies that might be widely accepted by society in general. One of the main ways to assess external benefit of climate change mitigation in energy sector is to conduct Willingness to Pay (WTP) assessments for climate change mitigation options by households. There are many studies on WTP assessment for climate stability conducted in recent years. The paper surveys the existing literature on WTP for climate change mitigation policy in the energy sector. The aim of the paper is to identify the common variables across a varied set of WTP studies in order to establish a basis for comparison. The key variables selected for analysis of WTP studies for climate change mitigation in energy sector addressed in the paper are: the WTP assessment methods; the main attributes used for comparing alternatives in WTP studies, targeted climate change mitigation policies in energy sector, mathematical model used to estimate WTP, the main socio-demographic factors having impact on WTP for climate change mitigation policies. The analysis of WTP studies for climate change mitigation is grouped in two areas: renewables and energy efficiency measures in households. The paper provides analytical structure for future studies to evaluate the effects of variation in key comparative elements upon WTP.
... show both support for and opposition towards off-shore renewable installations (Ladenburg, 2010;Krueger, 8 Parsons and Firestone, 2011). Such preferences for and against particular renewable technologies and locations 9 for such technologies (Bergmann, Colombo and Hanley, 2008) needs to be seen in the context of a general 10 overall support for the development of renewable energy sources, and wind power in particular, by the general 11 public (Kosenius and Ollikainen, 2013). 12 ...
... Balancing efforts to reduce greenhouse gas (GHG) emissions with ecological conservation has proven exceedingly difficult in practice, as production of alternative energy resources can impose negative impacts on the natural environments where they are produced [7]. Thus, efforts to mitigate the consequences of climate change can threaten the natural environments that can benefit from reduced carbon production. ...
Article
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Renewable energy development is a key pathway for mitigating climate change. The Taiwan government has been actively developing low carbon green energy with solar photovoltaic technology and wind power as their primary development projects. Cigu Taiwan provides an ideal research site to examine tradeoffs between ecological conservation, marine fisheries, and green power development, and the factors affect commitments to ecological conservation in the face of these tradeoffs. This research investigates the fishery and electricity symbiosis project in Cigu through a novel combination of the theory of planned behavior and the contingent valuation method to analyze the factors influencing the local residents’ behavioral intentions to safeguard ecological achievements in ecologically fragile areas through conservation trust funds. Analysis of survey responses from a convenience sample of 715 residents and resource users in the Cigu area reports that attitudes (ATT), subjective norms (SN), perceived behavioral control (PBC), environmental concern (EC), and environmental risk (ER) significantly influence the behavioral intention to pay eco-compensation fees; the local residents’ willingness to pay for the conservation trust funds was NTD 621.4/year (USD 21.9/year), and decreased to NTD 545.9/year (USD 19.2/year) after the implementation of fishery and electricity symbiosis. The discussion section argues that the drivers of ATT, SN, PBC, EC, and ER can be used by policy makers to direct local residents’ intentions and behavior toward conserving ecological achievements in fragile eco-environmental areas through payments for ecosystem services. Thus, this strategy can improve the sustainability of ecological and environmental restoration programs.
... A number of studies suggest that consumers do not only distinguish between conventional and renewable energies but also have different preferences for different renewable energy types, such as hydropower, photovoltaics, or wind power (Borchers et al., 2007;Cicia et al., 2012;Kosenius and Ollikainen, 2013). Providing information about what energy sources (i.e., fuel mix) are used for the electricity generation is, therefore, necessary to help consumers select electricity products that best match their preferences. ...
Article
Electricity suppliers in many countries are legally required to disclose their electricity products' fuel mix, with the objective of helping consumers make more informed electricity purchase decisions. The fuel mix disclosure system in Germany differs from those of many other countries and from that which the European Union demands. While electricity suppliers must list fossil and fissile energy sources individually, the renewable energy sources (RES) are lumped together under the generic terms "renewable energies supported by the EEG" and "other renewable energies." We investigated whether breaking these generic terms down into their components (photovoltaics, hydropower, wind power, and biomass) impacts consumers' preferences and their willingness to pay for renewables. Our results suggest that consumers are willing to pay more for electricity made from RES when information about the individual RES was provided. We found that a possible explanation for this finding is that consumers perceive the specified RES as less harmful to the environment than the two generic RES and that consumers have poor knowledge about what energy sources these generic RES represent. We therefore recommend German policy makers to move away from the current fuel mix disclosure system toward one that provides more detailed information.
... Most empirical studies have used surveys and interviews to measure public opinion, sentiment, awareness and perceptions of renewable energy. The literature finds broad public support for renewable energy across the United States [6], Finland [44], Mexico [45], Spain [46], South Korea [47], Portugal [48], Greece [49] and worldwide [20,50]. Surveys and interviews have advantages in gauging individual-level demographic information, such as gender, education, income [51], distance to renewable energy facilities, and previous experience with renewable energy technologies [41], which is one of the key determinants of individuals' preferences regarding renewable energy. ...
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This study presents the first quantitative meta-analysis of the non-market valuation literature on the external effects associated with wind power production. A data set of 60 observations drawn from 32 studies is constructed. The relative economic values of different types of externalities as well as the impact of various methodological and sample characteristics on welfare estimates are examined. The results indicate a significant effect of visual externalities on welfare estimates in both directions, i.e., a positive effect of visual improvements and a negative effect of deteriorations. This finding corresponds to predictions of the importance of visual impacts in the social science literature. External effects of wind power on biodiversity (mainly birds) do not affect welfare estimates. Indirect externalities caused by conventional sources of electricity that can be avoided by wind power, such as a the reduction of air pollution, do neither have a significant impact on welfare measures. Methodologically, we find substantial but inelastic income effects and, for choice experiments, clear evidence of sensitivity to scope. From a policy point of view, our results suggest that a policy mix combining a promotion of wind turbines with another green policy facilitates expansion of wind energy.
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ARTICLE INFO Keywords: Renewa ble energy so urces Green jo bs Just energy tran si tion Discrete choice experi ment Agua scal ientes Mexi co ABSTRACT Via a discrete ch oice experime nt (DCE), a sample of urban residents that contribute to their household electricity bill in Aguascalientes, Mexico, has be en asked to ch oose from am ong four electricity contracts-a status quo alternative, and three alternatives describe d in term s of type of renewable energy source (RES), % of RES in cu rrent electricity mix, new jobs in RE sector, and % increase in self-reported bimonthly electricity bill. Respondents report a positive willingness to pay (WTP) for both RES and new jobs in RE sector, and a higher WTP for solar energy in comparison to bioma ss energy. These results are time ly as there is a tension in Mexico du e to the energy strategy pu rsued by the cu rrent federal administration-wh ich in practice has slowed down the energy transition initiated in 20 15. This paper's find ings suggest that respondents to our DCE would support a just energy transition aiming to boost both RES and the creation of green jobs.
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The paper presents the necessities and preconditions for an integrated energy planning process in Germany. The legal requirements and regional governmental frameworks for such a process were analyzed and implemented in a case study in Bavaria. The recommended public participation process was enhanced through a questionnaire, which included a choice experiment projecting tailor-made visualizations of renewable energy sources in the local landscape. The results of the questionnaire and the choice experiment provided in-depth insight into preferred and accepted locations for wind turbines and ground-mounted photovoltaic systems, and furthermore revealed preferences regarding investment models, likely household savings and the promotion of renewable energy solutions. The paper concludes with recommendations for similar planning processes.
Chapter
The role of renewable energy sources (RES) in environmental protection has been widely recognized but the transition to an energy system, in which renewables will have replaced fossil fuels, can be facilitated if individuals are willing to pay for renewables. For this reason, studies exploring willingness-to-pay (WTP) for renewable energy (RE) have gained prominence in the literature strand dedicated to the analysis of the social aspects of energy transition. The aim of this chapter is to review the research works measuring WTP in the countries of the European Union (EU) and the factors, which exert the greatest influence on the willingness or unwillingness to pay for renewables. Overall, this chapter concluded that citizens in EU expressed adequate WTP levels and this willingness was mostly affected by individuals’ environmental awareness as well as their demographics and, in specific, age, gender, education level, and income status. Finally, the understanding of WTP and what determines it, can help policymakers evaluate the current policies, revise those which seem ineffective and design strategies intended to expand the adoption of low-carbon technologies.
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Reaching carbon neutrality would require the retirement of conventional power sources and substitution with renewable energy sources. Given that immediate substitution from conventional to renewable power sources is not feasible in the status quo, we investigate whether adding residential solar photovoltaic (PV) technology in addition to conventional power sources would reduce residential emissions. We use a large survey dataset of more than 300,000 observations and employ a structural equation model (SEM) to validate our findings. Interestingly, emissions increase by 1.75% if residential PV is adopted, and Japanese citizens with residential PV systems end up using 3.02% more electricity. We also find that pro-environmental consumers may also produce more emissions with PVs. As a result, reaching target carbon reductions in the residential sector would necessitate eliminating conventional energy sources. We address the policy implications for pathways to reduce residential emissions.
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In the present paper, the relevant literature in the field of willingness to pay (WTP) for green electricity has been reviewed and collected. It was attempted to provide an overview of the research carried out so far and possible future areas of investigation. Globally, 34 papers, containing 151 observations, were gathered and included in a meta-regression. The econometric analysis was conducted with the aid of weighted least square models. The main objective of the proposed work is to understand the effects of some country-level variables on the stated willingness to pay for renewable energy, as well as, survey specific variables. In particular, it was found that the present level of CO2 emissions, the share of renewables and the specification of the energy source in the scenario are positively related to the stated. The actual level of energy consumption, conversely, has a negative effect on WTP. Interestingly, producing nuclear energy contributes to lower the stated WTP for renewables. In terms of WTP, on average people are willing to contribute to RE with 13.29 USD per month. The use of biomass for energy has a lower stated WTP, of 11.02 USD. WTP for wind and solar were assessed to be very similar, of about 14.14.66 USD and 14.40 USD, respectively. Eventually, WTP for hydropower and geothermal energy was of 9.57 USD and 36.90 USD. The present study also suggests that more research would be helpful in the renewable energy field, in particular in developing countries.
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Sensitivity to scope in nonmarket valuation refers to the property that people are willing to pay more for a higher quality or quantity of a nonmarket public good. Establishing significant scope sensitivity has been an important check of validity and a point of contention for decades in stated preference research, primarily in contingent valuation. Recently, researchers have begun to differentiate between statistical and economic significance. This paper contributes to this line of research by studying the significance of scope effects in discrete choice experiments (DCEs) using the scope elasticity of willingness to pay concept. We first formalize scope elasticity in a DCE context and relate it to economic significance. Next, we review a selection of DCE studies from the environmental valuation literature and derive their implied scope elasticity estimates. We find that scope sensitivity analysis as validity diagnostics is uncommon in the DCE literature and many studies assume unitary elastic scope sensitivity by employing a restrictive functional form in estimation. When more flexible specifications are employed, the tendency is towards inelastic scope sensitivity. Then, we apply the scope elasticity concept to primary DCE data on people’s preferences for expanding the production of renewable energy in Norway. We find that the estimated scope elasticities vary between 0.13 and 0.58, depending on the attribute analyzed, model specification, geographic subsample, and the unit of measurement for a key attribute. While there is no strict and universally applicable benchmark for determining whether scope effects are economically significant, we deem these estimates to be of an adequate and plausible order of magnitude. Implications of the results for future DCE research are provided.
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This paper is an attempt to provide new perspectives on green energy defaults (GED) that promote the purchase of renewable energy electricity (RE e ) among consumers. We aim to complement existing studies and improve the understanding of GED, particularly when they are less, or unexpectedly, effective. To that end, we run a randomized controlled experiment and take the UK as a case study. We replicate the research design of previous lab experiments for comparative reasons. We also expand the analytical framework, identify key determinants and compare stated versus revealed preferences. Initial results indicate a lack of effectiveness across all treatment groups. This seems to challenge most of the existing lab experimental evidence and questions external validity claims. In addition to the actual treatments, current tariff agreements appear as significant determinants of choices. Nevertheless, when stated and revealed preferences are analysed, statistical tests revealed positive and significant differential effects, suggesting that the sole provision of an explicit, simple decision framework can trigger a greater adoption of REe, even in an opt-in treatment scenario. We thus argue that GED can still influence consumer decision-making in the desired policy direction. However, outcomes are likely to be context-specific so policy generalisations are not advisable. Building upon existing knowledge and our experimental results, we propose various motivational and contextual issues affecting consumer behaviour and thus the effectiveness and suitability of GED. They can offer guidance for future GED studies, particularly in countries in which market and consumer policy conditions for RE e may be less advanced or certain.
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Despite the often mentioned environmental benefits associated with transition from fossil fuels to renewable energy sources, their use for electricity production has non-negligible negative environmental impacts. The most commonly mentioned in surveys concern different types of landscape impacts, impacts on the fauna and flora, and noise. These impacts differ by size and location of plants, and by source of energy, rendering the policy decision complex. In addition, there are other welfare issues to take into consideration, as positive and negative environmental impacts are not evenly distributed among population groups. This paper proposes to compare the welfare impacts of renewable energy sources controlling for the type of renewable as well as the specific environmental impact by source. To this end, two discrete-choice experiments are designed and applied to a national sample of the Portuguese population. In one case, only individual negative impacts of renewables are used, and in another case, the negative impacts interact with a specific source. Results show the robustness of discrete-choice experiments as a method to estimate the welfare change induced by the impacts of renewable energy sources. Overall, respondents are willing to pay to reduce the environmental impacts, thus making compensation for local impacts feasible. Moreover, the estimations reveal that respondents are significantly sensitive to the detrimental environmental effects of specific renewable energy sources, being willing to pay more to use these sources of energy relative to others.
Chapter
The global challenges faced by the humankind encompass access to clean and affordable energy for all, shifting to the green development path and tackling the consequences of climate change. Success in addressing the related goals relies on the concerted efforts of society at large, whereby researchers may offer new solutions and media could raise awareness and organize public discussions. This chapter examines the policy landscape created for addressing the global energy and environment goals, as defined in the international documents. Moreover, the chapter analyses attention given to these goals by researchers, business and media. More specifically, the chapter focuses on goals set in the legally binding universal agreements and conventions formulated and adopted by the United Nations: “Transforming our world: the 2030 Agenda for Sustainable Development” (SDGs or SG), the Paris Agreement (PA), the “Future We Want” Resolution (FWW), and the Johannesburg Plan of Implementation (JPI). Research methods include policy analysis and the smart big data analysis of thousands of publications on the topic. The authors highlight controversial policy issues, as well as relatively low attention to global energy challenges on behalf of mass media. Researchers address these challenges much more often, however, focus primarily on a few SDGs. The outcomes underline further steps to be taken by global and national policymakers.
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This study applied a discrete choice experiment using best-worst scaling questions (multi-profile, BWS case 3) to estimate the trade-offs which a sample of the Polish population is willing to make for energy reform regarding carbon reduction. Attributes considered in the study are CO2 emissions reduction, National energy independence, Employment impact, Time needed for policy transition, and Impact on household energy prices. Respondents (n = 639) choose the best and worst of the presented policy options to fit a rank-ordered logit model. This study reveals concern about climate change among respondents, but that they prioritize energy prices and employment in their choice of preferred energy policy with significant variation across groups. A key distinction is revealed in the preferences by age cohort in which youngest (<25years old) respondents had the strongest WTP coefficients, particularly for CO2 and time to transition. Stronger and more urgent desires for CO2 reduction policies were also identified among the decisions of female respondents, those having more education, those without children, and middle and upper income groups. The respondents’ choices also revealed consistent loss aversion in all attributes presented in the choice experiment.
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Non-market values pose a challenge in decision making. In a contribution to the issue, the study assesses the potential positive impact on residents’ wellbeing of improving the ecological status of water bodies making up the Saarijärvi watercourse in Central Finland, a region with numerous Natura areas. The benefits provided by the aquatic environment and the factors affecting them were assessed using the contingent valuation method (CVM). A split-sample design made it possible to analyse expressed uncertainty with two payment vehicles: in one, the question of uncertainty was included in the willingness-to-pay (WTP) questions (multiple bounded discrete choice, MBDC); in the other, it was queried separately after the payment card (PC) question. Where respondents saw added value in Natura 2000 sites and received new information on water management, they experienced increased wellbeing from improved water quality. Perceived importance of sustainable hydropower and water regulation also figured in a desire to improve the ecological status of waters in the region. The results show that there is a noticeable positive WTP among residents (N = 473) for improved water status and that estimated WTP differs according to uncertainty: mean WTP every year per individual fell in the range EUR 29.70 to EUR 75.50. Improvement of water status and protection of Natura 2000 sites were found to be mutually reinforcing goals. Higher net social benefits could be realized if implementation of the applicable directives were more closely coupled to regional planning.
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Kenya has made considerable policy efforts to expand its renewable energy portfolio to meet energy demand and mitigate greenhouse gas (GHG) emissions. Development of proper policies requires a robust framework for analyzing the benefits of renewable energy investments. Towards this end, this study applied a choice experiment analysis to determine how attributes (type of energy, ownership, impact on environment, distance and visibility, community job creation, and yearly renewable energy tax) impact the public willingness to pay for renewable energy development in Kenya. A nationwide survey of 1020 households was conducted in nine counties using conditional logit (MNL) and random parameter logit (RPL) frameworks. The results reveal that the Kenyan public places a high value on environmental impact, followed by type of renewable energy and community job creation, respectively. On the other hand, respondents do not place much emphasis on ownership or distance and visibility. Policy simulation suggests that while renewable energy adoption is highly valued by households, the total willingness to pay is not enough to cover the higher capital cost for the development of various renewable energy technologies.
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Renewable energy is worldwide seen as a key element necessary to address climate change. However, finding socially acceptable locations for renewable energy facilities and the accompanying infrastructure increasingly often faces fierce opposition. This paper quantifies the landscape externalities of renewable energies employing a choice experiment. In addition, it is investigated how accounting for non-compensatory choice behavior, i.e. attribute cut-offs, affects welfare measures and subsequently policy recommendations. The empirical application is Germany where we conducted a nationwide survey on the development of renewable energies. We first show that cut-off elicitation questions prior to the choice experiment at least partially influence preferences. We further find that most participants state cut-off levels for attributes. Many are, however, at the same time willing to violate the self-imposed thresholds when choosing among the alternatives. To account for this effect, stated cut-offs are incorporated into a mixed logit model following the soft cut-off approach. Model results indicate substantial taste heterogeneity in preferences and in the use of cutoffs. Also, welfare estimates are substantially affected. We conclude that welfare changes from renewable energy development could be strongly underestimated when cut-offs are ignored.
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Developing countries are projected to experience the greatest increases in per capita energy use, motivating enormous investment in government-led energy projects. As energy fuel choices have large implications for pollution, a critical question surrounds citizens' preferences for renewable energy versus coal. While a robust literature suggests that citizens are willing to pay for renewables, the applicability of these findings to developing countries remains limited as many studies do not benchmark findings against preferences for increased capacity with dirtier fuels. We estimate citizens’ willingness to pay for improved electricity reliability from coal versus renewable technologies using a contingent valuation experiment embedded in a nationally-representative survey of 14,000 respondents across Vietnam, the country with the greatest recent increase in coal consumption. We find that while households are willing to pay 95% more in their monthly electricity bill for renewables (USD 7.5 billion per year in aggregate), they are also willing to pay 62% more for coal plants (USD 4 billion per year). Additionally, income and satisfaction with governance drive support both for renewables and coal, suggesting that agenda setting by policymakers is critical. If citizens are not offered alternatives, a majority will support coal even as governance improves or citizens become wealthier.
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Although Nigeria is endowed with plenty of sustainable energy resources, most rural households still rely heavily on conventional energy. Nigerians want to transition to clean energy but cannot afford the upfront costs. Households have long waited for the government to solve energy problems, to no avail. Rural households’ welfare can be improved if investors adopt an installment plan. However, businesses are concerned about economic gains. Thus, it is vital to investigate how much money rural households can afford every month, how long it would take them to complete the payment, and whether it is feasible for investors. In light of this, this study employs the contingent valuation method (CVM) to elicit responses and estimate the willingness to pay (WTP) for a pico-photovoltaic (pico-PV) system and improved cookstove (ICS). The results show that rural households have strong preferences for sustainable energy. Energy transition would save each household $60 annually. Furthermore, the cost-benefit analysis shows that it is viable to invest in the business. Thus, policymakers need to focus on attracting investors to rural areas, providing a conducive environment, and helping businesses keep track of people who sign up for the program.
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The optimization of photovoltaic solar power plants location in Atacama Desert, Chile, is presented in this study. The study considers three objectives: (1) Find sites with the highest solar energy potential, (2) determine sites with the least impact on the environment, and (3) locate the areas which produce small social impact. To solve this task, multi-criteria decision analyses (MCDAs) such as analytical hierarchy process and ordered weighted averaging were applied in a GIS environment. In addition, survey results of social impacts were analyzed and included into the decision-making process, including landscape values. The most suitable sites for solar energy projects were found near roads and power lines throughout the study area. Large suitable areas were found also from central valley from Arica and Parinacota to the north edge of Atacama region. In Atacama region, most suitable sites were found in the Andes. On the contrary, Andes were also found to have high environmental values and scenically valuable landscapes. Moderate and low suitability were found on the coast, especially in Atacama region. Factors such as slope and distance to power lines and roads influenced largely the sensitivity analysis. Area of high suitability increased by 15% when distance to roads was excluded and 18% when distance to power lines or slope was removed. MCDA-GIS method was found to be useful and applicable to the optimization of solar power plant locations in northern Chile.
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This book describes the new generation of discrete choice methods, focusing on the many advances that are made possible by simulation. Researchers use these statistical methods to examine the choices that consumers, households, firms, and other agents make. Each of the major models is covered: logit, generalized extreme value, or GEV (including nested and cross-nested logits), probit, and mixed logit, plus a variety of specifications that build on these basics. Simulation-assisted estimation procedures are investigated and compared, including maximum simulated likelihood, method of simulated moments, and method of simulated scores. Procedures for drawing from densities are described, including variance reduction techniques such as anithetics and Halton draws. Recent advances in Bayesian procedures are explored, including the use of the Metropolis-Hastings algorithm and its variant Gibbs sampling. No other book incorporates all these fields, which have arisen in the past 20 years. The procedures are applicable in many fields, including energy, transportation, environmental studies, health, labor, and marketing.
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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.
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Development of renewable energy resources, such as wind farms and hydro-electric schemes, are being promoted as a new method of expanding and diversifying employment in rural areas. However, such energy projects are associated with a range of environmental impacts which might be detrimental to other economic activities, such as those based on nature tourism. The authors use a Choice Experiment to quantify peoples' preferences over environmental and employment impacts that may result from the deployment of renewable energy projects in rural areas of Scotland, focussing in particular on any differences between the preferences of urban and rural dwellers, and on heterogeneity within these groups. Rural and urban households are shown to have different welfare gains which are dependent on the type of renewable energy technology and on the scale of project under consideration.
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Focusing on the many advances that are made possible by simulation, this book describes the new generation of discrete choice methods. Researchers use these statistical methods to examine the choices that consumers, households, firms, and other agents make. Each of the major models is covered: logit, generalized extreme value, or GEV (including nested and cross-nested logits), probit, and mixed logit, plus a variety of specifications that build on these basics. The procedures are applicable in many fields, including energy, transportation, environmental studies, health, labor, and marketing.
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1. Choosing as a way of life Appendix A1. Choosing a residential telecommunications bundle 2. Introduction to stated preference models and methods 3. Choosing a choice model Appendix A3. Maximum likelihood estimation technique Appendix B3. Linear probability and generalised least squares models 4. Experimental design 5. Design of choice experiments Appendix A5. 6. Relaxing the IID assumption-introducing variants of the MNL model Appendix A6. Detailed characterisation of the nested logit model Appendix B6. Advanced discrete choice methods 7. Complex, non-IID multiple choice designs 8. Combining sources of preference data 9. Implementing SP choice behaviour projects 10. Marketing case studies 11. Transportation case studies 12. Environmental valuation case studies 13. Cross and external validity of SP models.
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Renewable energy sources are expected to represent a growing proportion of the primary energy sources for the production of electricity. Environmental and social reasons support this tendency. European and Spanish energy plans assign a role of primary importance to biomass in general and, especially, to forest biomass for the period up to 2010. This paper reviews, organises and quantifies the potentials and values of this renewable resource in the foremost Spanish Region in terms of silviculture. The non-market externalities (environmental, economic and social) are classified, and some of them are quantified to present a synthesis of the benefits of a partial substitution of fossil fuels by forest biomass for electricity generation.
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This electronic textbook on statistics provides both extensive and in depth coverage of statistics. Although an excellent reference for analytical chemistry students and faculty, the lack of chemistry-related practice problems or exercises may not make it an appropriate substitute for a traditional text.
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VTT Tiedotteita - Research Notes 2219 Kauppa- ja teollisuusministeriön Uusiutuvan energian edistämisohjelman työryhmän ehdottamana tavoitteena on kasvattaa bioenergian käyttö vuoteen 2010 mennessä 350 PJ:een, mikä tarkoittaa käytön lisääntymistä vuoden 2001 tasosta noin 30 %. Turpeelle ei tuotantotavoitteita ehdoteta, mutta tuotannon arvioidaan prosentuaalisesti pysyvän nykyisellä tasollaan eli noin 6 %:ssa. Tämä merkitsee noin 85 PJ:n käyttöä vuonna 2010, eli myös turpeen käyttö lisääntyy jonkin verran. Tällä hetkellä kotimaisten polttoaineiden tuotannon työllistävyys on 4 200 henkilötyövuotta. Vuosikymmenen loppuun mennessä tuotanto- ja käyttömäärien kasvaessa tulee alan työllistävyys olemaan noin 6 600 henkilötyövuotta. Määrällisesti eniten työllistävät turve- ja metsähaketuotanto. Uusina energialähteinä tulevat mukaan biokaasun ja peltobiomassojen laajamittainen tuotanto sekä kokonaan uutena alueena biopolttonesteet. Kotimaisia polttoaineita käyttävät laitokset työllistävät tällä hetkellä 2 800 henkilöä ja vuosikymmenen loppuun mennessä luku nousee 2 900 henkilötyövuoteen, joten niiden käytön työllistävyyden nettolisäys jää käyttöpaikoilla vähäiseksi. Bioenergia-alan laitevalmistuksen ja viennin on arvioitu lisääntyvän merkittävästi nykyisestä vuosikymmenen loppuun mennessä, ja siten myös laitevalmistuksen työllistävä vaikutus noussee. Laiteviennin arvioidaan kasvavan miljardiin euroon lähivuosina, ja sen myötä välitön työllistävyys saattaa nousta yli 8 500 henkilötyövuoteen. The objective of the National Action Plan for Renewable Energy Sources of Ministry of Trade and Industry is to increase the use of bioenergy up to 350 PJ by the year 2010. Compared to 2001 the growth would be approximately 30 %. There will be no production targets for energy peat but it is estimated that the production will remain at the current level of 6 % also in the future. This corresponds approximately 85 PJ in 2010, that is to say that also the use of energy peat will increase in some degree. Currently the production of indigenous biomass-based fuels is estimated to employ for 4 200 man-years. By the end of the decade the employment effect is estimated to be approximately 6 600 man-years due to the increase in bioenergy production and use. Energy peat production and forest chips production employ people most. Large scale production of biogas and agrobiomass as well as biofuels will be new energy sources involved. At present heating and power plants which use bioenergy and energy peat employ 2 800 persons. By the end of the decade the amount of employees is expected to rise to 2 900 man-years. Thus, net-growth of employment by bioenergy use will be moderate. Manufacture and export of products in the bioenergy sector are expected to grow significantly by the end of the decade. Thus the employment effect of machinery manufacture is expected to rise. The volume of technology export is expected to reach EUR 1 000 000 000 in the near future. Consequently, direct employment effect may exceed 8 500 man-years.
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The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the relationship between values (understood as principles guiding behaviour), choices and their final outcomes in terms of life satisfaction, and use data from the BHPS to assess whether our ideas on what is important in life (individual values) are broadly connected to what we experience as important in our lives (life satisfaction).
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We examine the potential of bioenergy crops to offset greenhouse gas emissions from fossil fuels, assuming homogeneous agricultural land and distance-dependent transport costs. Variable transport costs define the socially and privately optimal extensive margin of the bioenergy crop production and imply that fertiliser intensity differs across locations. Under current policy, private fertiliser application is suboptimal, requiring location-specific input, transport or output subsidies. The theoretical model is applied to reed canary grass (Phalaris arundinacea L.) in Finland, which offsets emissions from peat in electricity production. If oats is the alternative crop, and taking permit price of CO2 emissions as the proxy for climate benefits over the life cycle, reed canary grass production is socially optimal even 100 km away from the power plant and still offsets more than 6 tons/ha of CO2 emissions from peat.
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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 short-term security of energy supply; (iii) has an impact on the employment in the energy sector; and (iv) 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.
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To study the potential effects of increased biofuel use, we evaluated six representative analyses of fuel ethanol. Studies that reported negative net energy incorrectly ignored coproducts and used some obsolete data. All studies indicated that current corn ethanol technologies are much less petroleum-intensive than gasoline but have greenhouse gas emissions similar to those of gasoline. However, many important environmental effects of biofuel production are poorly understood. New metrics that measure specific resource inputs are developed, but further research into environmental metrics is needed. Nonetheless, it is already clear that large-scale use of ethanol for fuel will almost certainly require cellulosic technology.
Reports of Finnish Environment Insti-tute 11 The Choice Modelling Approach to Environmental Valuation Rural versus urban preferences for renewable energy developments
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Life-Cycle Assessment for Vattenfall's Electricity Generation
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Tuulivoimalan elinkaariarviointi (Life Cycle Assessment of Wind Power Plant
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Tuulivoimamarkkinat suomalaisen teknologiavien-nin kannalta (Windpower market and technology expert in Finland) VTT Energia Reports US consumers' willigness to pay for green electricity
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Peltola, E., Holttinen, H., 2001. Tuulivoimamarkkinat suomalaisen teknologiavien-nin kannalta (Windpower market and technology expert in Finland). VTT Energia Reports, p. 45. Roe, B., Teisl, M., Levy, A., Russel, M., 2001. US consumers' willigness to pay for green electricity. Energy Policy 29, 917–925.
Vihreän energian kriteerit ja elinkaariarviointi energiatuotteiden ympäristökilpailukyvyn arvioinnissa (Green energy criteria and life cycle assessment in assessing environmental competitiveness of energy products). VTT Research Notes
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Mälkki, H., Hongisto, M., Turkulainen, T., Kuisma, J., Loikkanen, T., 1999. Vihreän energian kriteerit ja elinkaariarviointi energiatuotteiden ympäristökilpailukyvyn arvioinnissa (Green energy criteria and life cycle assessment in assessing environmental competitiveness of energy products). VTT Research Notes 1974, 117p.
Pienvesikartoitus (Small Hydro Evaluation) Report for Ministry of Trade and Industry Dnro 58
KTM, 2005b. Pienvesikartoitus (Small Hydro Evaluation). Report for Ministry of Trade and Industry Dnro 58/804/2004. PR Vesisuunnittelu Oy.
Electricity Generation by Energy Source
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Bioenergian tuotannon uudet haasteet Suomessa ja niiden ympäristönäkökohdat (The production of bioenergy in Finland: new challenges and environmental aspects)
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Antikainen, R., Tenhunen, J., Ilomäki, M., Mickwitz, P., Punttila, P., Puustinen, M., Seppälä, J., Kauppi, L., 2007. Bioenergian tuotannon uudet haasteet Suomessa ja niiden ympäristönäkökohdat (The production of bioenergy in Finland: new challenges and environmental aspects). Reports of Finnish Environment Institute 11.
Vesivoimatuotannon määrä ja lisäämismahdollisuudet Suomessa (The opportunities to increase hydropower production capacity in Finland) Energiateollisuus Oy
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Bioenergian tuotanto-ja käyttöketjut sekä niiden suorat työllisyysvaikutukset (Direct employment effects of bioenergy production and use). VTT Research Notes 2219
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Halonen, P., Helynen, S., Flyktman, M., Kallio, E., Kallio, M., Paappanen, T., Vesterinen, P., 2003. Bioenergian tuotanto-ja käyttöketjut sekä niiden suorat työllisyysvaikutukset (Direct employment effects of bioenergy production and use). VTT Research Notes 2219, 51p.
The Theory and Practice of Environmental and Resource Economics-Essays in Honour of Karl-Gustaf Löfgren
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Håkansson, C., Johansson, P.-O., Kriström, B., 2005. Salmon and hydropower: dynamic cost-benefit analysis. In: Aronsson, T., Axelsson, R., Brännlund, R. (Eds.), The Theory and Practice of Environmental and Resource Economics-Essays in Honour of Karl-Gustaf Löfgren. Edwar Elgar, UK.
Vesivoimatuotannon määrä ja lisäämismahdollisuudet Suomessa (The opportunities to increase hydropower production capacity in Finland)
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KTM, 2005a. Vesivoimatuotannon määrä ja lisäämismahdollisuudet Suomessa (The opportunities to increase hydropower production capacity in Finland). Energiateollisuus Oy.
Report for Ministry of Trade and Industry Dnro 58/804/2004
  • Ktm
KTM, 2005b. Pienvesikartoitus (Small Hydro Evaluation). Report for Ministry of Trade and Industry Dnro 58/804/2004. PR Vesisuunnittelu Oy.
Bioenergian tuotannon haasteet ja tutkimustarpeet (Challenges and research needs of bio energy production). Metla Working Papers
  • R Lauhanen
  • J Laurila
Lauhanen, R., Laurila, J., 2007. Bioenergian tuotannon haasteet ja tutkimustarpeet (Challenges and research needs of bio energy production). Metla Working Papers, p. 42. Law of the Subsidies for Electricity Produced From Renewable Sources, 2010. Laki uusiutuvilla energialähteillä tuotetun sähkön tuotantotuesta. 1396/2010.
Tuulivoimamarkkinat suomalaisen teknologiaviennin kannalta (Windpower market and technology expert in Finland)
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Peltola, E., Holttinen, H., 2001. Tuulivoimamarkkinat suomalaisen teknologiaviennin kannalta (Windpower market and technology expert in Finland). VTT Energia Reports, p. 45.
Price of Electricity by Type of Consumer
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