Authors: | Andor, Mark Frondel, Manuel Sommer, Stephan |
Title: | Equity and the Willingness to Pay for Green Electricity: Evidence from Germany |
Language (ISO): | en |
Abstract: | The production of electricity on the basis of renewable energy technologies is a classic example of an impure public good. It is often discriminatively financed by industrial and household consumers, such as in Germany, where the energy-intensive sector benefits from far-reaching exemptions, while all other electricity consumers are forced to bear a higher burden. Based on randomized information treatments in a stated-choice experiment among about 11,000 German households, we explore whether this coercive payment rule affects households’ willingness-to-pay (WTP) for green electricity. Our central result is that reducing inequity by abolishing the exemption for the energy-intensive industry raises households’ WTP, a finding that may have high external validity. |
Subject Headings: | stated-choice experiment fairness behavioral economics |
URI: | http://hdl.handle.net/2003/36800 http://doi.org/10.17877/DE290R-18801 |
Issue Date: | 2018 |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
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DP_0618_SFB823_Andor_Frondel_Sommer.pdf | DNB | 211 kB | Adobe PDF | View/Open |
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