Featured Research

from universities, journals, and other organizations

Who Wants To Pay More For Green Electricity?

Date:
June 30, 2009
Source:
Inderscience
Summary:
Individuals prefer to be involved in a collective contribution to green electricity that involve everyone paying more, rather than having individual higher bills.

A research report in the International Journal of Environment and Pollution suggests that individuals prefer to be involved in a collective contribution to green electricity that involve everyone paying more, rather than having individual higher bills.

Many electricity suppliers offer so-called green tariffs. These tariffs charge a premium, which is then invested in renewable electricity generation, such as wind power and solar energy, or in other forms of carbon reduction technologies. However, Roland Menges of the University of Flensburg and Stefan Traub of the University of Bremen, Germany, wanted to know whether an individual's "willingness to pay" (WTP) for green electricity matched up with expectations or whether an alternative business model might work better.

The researchers surveyed people and offered them either a public-choice scenario or an individual-choice scenario. They pointed out in their survey that there are three different payment vehicles for the public promotion of renewable energy: direct tax (reduced income), indirect tax (tax added to bill via green tariff) and "carbon" tax. They tested to see how much free-riding would take place in each scenario. Free-riding would involve individuals paying for a standard tariff while benefiting from the development of renewable energy paid for by others with green tariffs. They also looked at how public promotion of green electricity would impinge on opinions and uptake of green tariffs. Finally, they investigated trust in the market.

The overarching conclusion of the study is that people in Germany prefer their green electricity products to be paid for as a collective contribution rather than as higher bills for individuals who happen to opt for a green tariff. This result might be interpreted in light of the more general conclusion of political economy that voters prefer an improvement of the environment by means of regulations and prohibitions instead of market-driven activities, the researchers add.


Story Source:

The above story is based on materials provided by Inderscience. Note: Materials may be edited for content and length.


Journal Reference:

  1. Who should pay the bill for promoting green electricity? An experimental study on consumer preferences. International Journal of Environment and Pollution, 2009, 39, 44-60

Cite This Page:

Inderscience. "Who Wants To Pay More For Green Electricity?." ScienceDaily. ScienceDaily, 30 June 2009. <www.sciencedaily.com/releases/2009/06/090630163631.htm>.
Inderscience. (2009, June 30). Who Wants To Pay More For Green Electricity?. ScienceDaily. Retrieved October 23, 2014 from www.sciencedaily.com/releases/2009/06/090630163631.htm
Inderscience. "Who Wants To Pay More For Green Electricity?." ScienceDaily. www.sciencedaily.com/releases/2009/06/090630163631.htm (accessed October 23, 2014).

Share This



More Earth & Climate News

Thursday, October 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Dances With Wolves in China's Wild West

Dances With Wolves in China's Wild West

AFP (Oct. 23, 2014) One man is on a mission to boost the population of wolves in China's violence-wracked far west. The animal - symbol of the Uighur minority there - is under threat with a massive human resettlement program in the region. Duration: 00:41 Video provided by AFP
Powered by NewsLook.com
San Diego Zoo's White Rhinos Provide Hope for the Critically Endangered Species

San Diego Zoo's White Rhinos Provide Hope for the Critically Endangered Species

Reuters - Light News Video Online (Oct. 22, 2014) The pair of rare white northern rhinos bring hope for their species as only six remain in the world. Elly Park reports. Video provided by Reuters
Powered by NewsLook.com
Trick-or-Treating Banned Because of Polar Bears

Trick-or-Treating Banned Because of Polar Bears

Buzz60 (Oct. 21, 2014) Mother Nature is pulling a trick on the kids of Arviat, Canada. As Mara Montalbano (@maramontalbano) tells us, the effects of global warming caused the town to ban trick-or-treating this Halloween. Video provided by Buzz60
Powered by NewsLook.com
Traditional Farming Methods Gaining Ground in Mali

Traditional Farming Methods Gaining Ground in Mali

AFP (Oct. 20, 2014) He is leading a one man agricultural revolution in Mali - Oumar Diatabe uses traditional farming methods to get the most out of his land and is teaching others across the country how to do the same. Duration: 01:44 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Plants & Animals

Earth & Climate

Fossils & Ruins

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins