How much will the residents pay for clean energy? Empirical study using the double bound dichotomous choice method for Tianjin, China. (20th December 2019)

• Record Type: Journal Article
• Authors: Xie, Bai-Chen; Zhao, Wei; Yin, Zhong-Ling; Xie, Pu
• Is Part Of: Journal of cleaner production. Volume 241(2019)
• Publication Date: 2019-12-20
• Subjects: Double-bounded dichotomous choice -- Contingent valuation method -- Willingness to pay -- Clean energy; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2019.118208
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: Production cost has always been a critical factor affecting the development of clean energy. It is a relatively complex issue if there needs to be a policy adjustment as it is highly correlated with the economic development and financial situation of the government, as well as customer willingness to pay (WTP) for clean energy. This study investigated whether residents in Tianjin were willing to pay for clean energy by using the theoretical framework of the double-bounded dichotomous choice (DBDC) method. It constructs a maximum likelihood estimation function model, which can then be used to calculate the WTP and identify the factors affecting it using the logit model. Furthermore, we compared the model results with a previous study based on the open ended (OE) method. This current survey collected a sample of 682 respondents, 474 of which were willing to pay for clean energy. The average WTP was 11.51$/month, which was heavily influenced by belief, knowledge, education, income, and other variables. Although the WTP varied after analyzing different questionnaires, the factors affecting it were similar. Highlights: Double bound dichotomous choice (DBDC) method is used to study the residents' WTP. Results are compared with our previous study of WTP using open-ended (OE) method. The WTPs estimated by DBDC are 1–5 times higher than those got from OE method. This study has also collected the residents' suggestions and concerns on clean power.