Abstract

Numerous countries seek to decarbonize their economy. Previous research has shown that the active involvement of citizens raises the acceptance of change in the energy system. While most studies on citizen participation have focused on citizens as investors, in this paper, we take a consumer perspective. Based on a sample of more than 2000 German electricity consumers, we conduct a Discrete Choice Experiment to estimate willingness to pay for co-determination rights, transparent pricing policies, and an electricity utility's profit distribution. We find large additional willingness to pay for all of these attributes, which, in total, amount to more than a quarter of the overall electricity price per kilowatt hour. Women have a higher willingness to pay of up to one Eurocent per kilowatt hour. We discuss the implications of our findings for Germany's and the European Union's energy policy. Among other things, we conclude that governmental labeling initiatives should include participation-related information to enhance consumer welfare. (C) 2018 Elsevier B.V. All rights reserved.

Keywords

Choice modeling; Electricity; Utilities; Cooperatives; Renewable energy; Consumer preferences; Participation; Willingness to pay

Published in

Energy Economics
2018, Volume: 75, pages: 440-448

SLU Authors

• Rommel, Jens

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

SDG7 Ensure access to affordable, reliable, sustainable and modern energy for all


UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1016/j.eneco.2018.08.025

Permanent link to this page (URI)

https://res.slu.se/id/publ/96261