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.

Related Articles


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 25, 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 25, 2014).

Share This



More Earth & Climate News

Saturday, October 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

EU Gets Climate Deal, UK PM Gets Knock

EU Gets Climate Deal, UK PM Gets Knock

Reuters - Business Video Online (Oct. 24, 2014) EU leaders achieve a show of unity by striking a compromise deal on carbon emissions. But David Cameron's bid to push back EU budget contributions gets a slap in the face as the European Commission demands an extra 2bn euros. David Pollard reports. Video provided by Reuters
Powered by NewsLook.com
Deep Sea 'mushroom' Could Be Early Branch on Tree of Life

Deep Sea 'mushroom' Could Be Early Branch on Tree of Life

Reuters - Innovations Video Online (Oct. 24, 2014) Miniature deep sea animals discovered off the Australian coast almost three decades ago are puzzling scientists, who say the organisms have proved impossible to categorise. Academics at the Natural History of Denmark have appealed to the world scientific community for help, saying that further information on Dendrogramma enigmatica and Dendrogramma discoides could answer key evolutionary questions. Jim Drury has more. Video provided by Reuters
Powered by NewsLook.com
Raw: Tornado Rips Roofs in Washington State

Raw: Tornado Rips Roofs in Washington State

AP (Oct. 24, 2014) A rare tornado ripped roofs off buildings, uprooted trees and shattered windows Thursday afternoon in the southwest Washington city of Longview, but there were no reports of injuries. (Oct. 24) Video provided by AP
Powered by NewsLook.com
Fast-Moving Lava Headed For Town On Hawaii's Big Island

Fast-Moving Lava Headed For Town On Hawaii's Big Island

Newsy (Oct. 24, 2014) Lava from the Kilauea volcano on Hawaii's Big Island has accelerated as it travels toward a town called Pahoa. Video provided by Newsy
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