The value of continuous power supply for Flemish households

This paper estimates the willingness to pay/accept (WTP/WTA) of Flemish households for continuous power supply, based on a stated preference approach. The data were collected via a choice experiment and were then used to estimate a main effects conditional logit model and a random parameter logit model with interaction effects and correlated preferences. Power outages are characterized by 6 attributes: annual frequency, duration, peak or off peak, announced or unannounced, winter or summer and invoice impact. All estimates have the expected sign. The results are used to assess the marginal WTP/WTA for each of these attributes. Overall, the outcome suggests that Flemish households have heterogeneous preferences regarding power outage attributes, and that, due to a status quo bias, only a relatively small share of them is willing to switch to a lower reliability level if this would be compensated by a bill discount.     

火电机组能耗-供电成本动态模型研究

分析了火电机组的主要能耗指标,在其基础上建立了机组能耗一供电成本模型,并对影响单位供电成本的主要因素进行了敏感性分析。通过能耗一供电成本模型,结合电厂实时运行数据,计算了机组在某段运行时间内的动态供电成本,为火电机组的经济性运行提供参考。     

Residential consumers in the Cape Peninsula’s willingness to pay for premium priced green electricity

A number of studies have explored the willingness (i.e. stated willingness as opposed to actual willingness) of consumers to pay a premium for green electricity in developed countries. However, little is known about how this translates into an emerging economy context. This study investigates the level of willingness of residential households in South Africa’s Cape Peninsula to pay a premium for electricity from renewable energy. It methodologically drew on recent contributions in the literature on norm-motivated behaviour used to identify testable factors that could influence residential consumers’ willingness to pay (WTP).     

Cost estimates for nuclear power in the UK

Current UK Government support for nuclear power has in part been informed by cost estimates that suggest that electricity from new nuclear power stations will be competitive with alternative low carbon generation options. The evidence and analysis presented in this paper suggests that the capital cost estimates for nuclear power that are being used to inform these projections rely on costs escalating over the pre-construction and construction phase of the new build programme at a level significantly below those that have been experienced by past US and European programmes. This paper applies observed construction time and cost escalation rates to the published estimates of capital costs for new nuclear plant in the UK and calculates the potential impact on levelised cost per unit of electricity produced. The results suggest that levelised cost may turn out to be significantly higher than expected which in turn has important implications for policy, both in general terms of the potential costs to consumers and more specifically for negotiations around the level of policy support and contractual arrangements offered to individual projects through the proposed contract for difference strike price.     

Households' willingness to pay for overhead-to-underground conversion of electricity distribution networks

Underground low-voltage electricity networks have several advantages over overhead networks including reliability of supply, safety and improved visual amenity. The economic viability of replacing existing overhead networks with new underground networks depends on the value of these benefits to households, but no complete value estimates are available in the literature. This paper represents a contribution towards addressing this research gap. A stated choice survey is used to estimate willingness to pay for undergrounding in established residential areas in Canberra, Australia. Average willingness to pay is at least A$6838 per household and there is significant variation in preferences over the population. The results suggest that benefits would be highest in areas with higher household income and older residents where visual amenity, safety, tree trimming, or restrictions on the use of yard space are of concern.     

The politics of power: Electricity reform in India

Ongoing theft, corruption, and an artificially decreased pricing structure have made it nearly impossible for the state utilities in India to improve power service. As a result, industrial consumers across India exit the state-run system and rely on their own on-site power generation in order to ensure a consistent and reliable source of electricity. The 2003 Electricity Act encourages further power production from these captive plants through its open access clause. By encouraging the growth of these captive power plants, politicians in India set up a dual-track economy, whereby state-run and market-run production exist side-by-side. This strategy allows politicians to encourage private sector involvement in the electricity market, without jeopardizing the support of key political constituencies at the state level.     

Willingness to pay for green electricity in Korea: A contingent valuation study

Green electricity is energy that is generated from renewable energy sources such as solar power, wind power, small-scale hydroelectric power, tidal power, and biomass power. These sources mostly do not produce pollutants and are considered environmentally friendly. However, considering the current state of technology, they are more costly. Government should take visible actions to compensate for the increased production costs. This paper attempts to apply a contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits that ensue from the introduction of the policy that raises the percentage of green electricity consumption from 0.2% of the total electricity supply to 7% by 2011. Overall, the CV survey was successful in eliciting the willingness to pay (WTP) for green electricity considering that the CV method operated within respondents’ abilities to answer and the WTP estimates were statistically significant. The monthly mean WTP estimates from parametric and non-parametric methods were KRW 1681 (USD 1.8) and KRW 2072 (USD 2.2), respectively. The estimates of the annual benefits to relevant residents amounted to KRW 150.5 billion (USD 157.5 million) and KRW 185.6 billion (USD 194.2 million), respectively.     

The diffusion of microgeneration technologies – assessing the influence of perceived product characteristics on home owners' willingness to pay

This study presents empirical insight into willingness to pay (WTP) for microgeneration technologies and the relative influence of subjective consumer perceptions. First, we apply a double-bounded contingent valuation method to elicit Irish home owners' WTP for micro wind turbines, wood pellet boilers, solar panels and solar water heaters. Utilizing findings from the adoption of innovation literature, in a second step we assess the influence of antecedents on WTP for each of the four technologies, including (1) home owners' perception of product characteristics, (2) normative influences and (3) sociodemographic characteristics. Our results show that WTP varies significantly among the four technologies. More importantly, however, home owners hold different beliefs about the respective technologies, which significantly influence their WTP. The results provide valuable information for marketers and policy makers aiming to promote microgeneration technologies more effectively in consumer markets.     

Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV

The aim of this paper is to analyze consumers' awareness towards electric vehicle (EV) and examine the factors that are most likely to affect consumers' choice for EV in China. A comprehensive questionnaire survey has been conducted with 299 respondents from various driving schools in Nanjing. Three binary logistic regression models were used to determine the factors that contribute to consumers' acceptance of EVs, their purchase time and their purchase price. The results suggest that:     

Psychological determinants of attitude towards and willingness to pay for green electricity

The results of a mail survey of 855 Swedish household consumers showed that willingness to pay for green electricity increased with a positive attitude towards green electricity and decreased with electricity costs. Attitude towards green electricity was in turn related to awareness of consequences of environmental problems for oneself, others, and the biosphere, concerns for these consequences, and self-transcedent value types.     

Cost reduction potentials in the German market for balancing power

This article examines potential cost reductions in the market for balancing power by pooling all four German control areas. In a united control area both the procurement and the production of balancing power may be more efficient than in four separated control areas. Our data contain bids on energy procurement as well as balancing power flows in the period from December 2007 to November 2008. A reference scenario simulates the market results for secondary and tertiary balancing power. Subsequently, we simulate a united control area. We show that in the period under review the total costs of balancing power are reduced by 17%.     

Stuck between a ROC and a hard place? Barriers to the take up of green energy in the UK

This paper examines the UK mechanisms for ensuring future investment in renewable energy through consumer adoption of green energy tariffs and the Renewable Obligation Certificate (ROC) system. Using a national survey and focus groups the stated willingness by UK customers to pay a premium for renewable or green energy and actual take up of such tariffs is assessed. Substantial differences between willingness to pay for and the adoption of green energy tariffs are reported. This disparity is linked to a range of factors including consumer confusion, lack of supply, complexities of constructing ‘green source’ tariffs under the ROC system and a lack of customer trust. It is concluded that the re-definition of the green energy market in favour of ‘green source’ tariffs, greater direct compliance with the Renewable Obligation by addressing supply constraints, and efforts in providing clearer information and choices for consumers via a compulsory green energy accreditation scheme are required if willing consumers’ are to contribute to investment in renewable energy.     

Electric power and economic development: The case of India

This article explores the role of energy in the process of economic development, by studying the experience of India since independence. The analysis shows evidence of considerable flexibility in the energy consumption-income relationship. The case is made that policies for demand management in different sectors of the economy are just as important as plans to enhance supply. In general, the power industry in India has performed quite well, but it suffers from organizational weaknesses which have resulted in large financial losses and a record of unreliable supply. Organizational restructing would improve efficiency and bring a change in direction which is now essential for considering the adoption of decentralized generation technologies, particularly in rural areas. The lessons from India's experience are applicable in different degrees to either LDCs.     

Analysis of competition and market power in the wholesale electricity market in India

The electricity reforms were initiated in India with the objective of promoting competition in the electricity market. In order to promote competition, the Electricity Act 2003 was enacted and various policy initiatives were taken by the Government of India. Central Electricity Regulatory Commission (CERC) also facilitated competition through the regulatory framework of availability based tariff, Indian Electricity Grid Code, open access in inter-state transmission, inter-state trading and power exchanges. Despite these initiatives, electricity prices increased in the Wholesale Electricity Market in India (WEMI). This paper analyses the market structure and competitiveness in the WEMI. There are, of course, various potential reasons for the rise in the electricity price. This paper seeks to investigate, if market power was one of the reasons for increase in market prices. Concentration ratio, Herfindahl–Hirschman index, Supply Margin Assessment, and Residual Supply Index have been used to measure market power. This paper also uses the price–cost mark-up to examine, if exercise of market power led to higher margins. The analysis suggests that market power of firms may be part of the reason for the increase in electricity prices in WEMI. The study suggests various measures to increase competition in the WEMI.     

Estimating the public’s value of implementing the CO2 emissions trading scheme in Korea

The Korean government set out the carbon dioxide (CO₂) emissions reduction target as 30% below business-as-usual by 2020. The CO₂ emissions trading scheme (ETS) was initiated in January 2015 to meet this target. We attempt to estimate the public's value of implementing the ETS for CO₂ emissions reduction. We apply the contingent valuation (CV) method using the willingness to pay (WTP) data obtained from a national CV survey of 1000 randomly selected households. The survey was conducted via in-person interviews. Value judgments required of the respondents were within their abilities. The mean WTP to achieve the stated target of CO₂ emissions reduction using ETS is estimated to be KRW 1873 (USD 1.66) per household per month, which is statistically significant at the 1% level. The aggregate national value amounts to KRW 409.2 billion (USD 363.4 million) per year. Thus, even though Korea has no obligations to cut emissions under the Kyoto protocol, the public is willing to bear a financial burden to implement the ETS. If its cost is less than this value, implementing the ETS can be socially profitable. The results of this study can serve as a basis for further policy discussions and decisions.     

The public's value of hydrogen fuel cell buses: A contingent valuation study

With the increasing interest in global warming, there has been intense international competition with regard to the introduction of the hydrogen (H₂) fuel cell (FC) bus, which represents a promising solution for the low-carbon age. With respect to the investment in H₂-based technology development and the expansion of H₂ FC vehicles, the consumer attitude is a crucial factor because the Korean government will consider it one of the most important factors in its decision to approve a large-scale introduction of H₂ FC buses. In this regard, this study measures the public's willingness to pay (WTP) for a large-scale introduction of H₂ FC buses in Korea by employing a survey approach termed the contingent valuation. Furthermore, to enhance statistical efficiency, this study employs the one-and-one-half-bound dichotomous choice method. The annual mean WTP estimate was KRW 4230 (USD 4.55) per household as of 2007. The estimate of the annual benefits to the affected residents was KRW 32.3 billion (USD 34.7 million). The results of this study are expected to be helpful in policy decisions related to the introduction of H₂ FC buses and investment in H₂ technology development.     

Public willingness to pay for hydrogen stations expansion policy in Korea: Results of a contingent valuation survey

The Korean government is planning to increase the number of its hydrogen stations from 20 in 2016 to 100 by 2020, to enhance the use of hydrogen fuel cell electric vehicles and to reduce greenhouse gas (GHG) emissions. This article looks at the public willingness to pay (WTP) for implementing the expansion policy. To this end, a contingent valuation survey of 1000 Korean households was implemented. To mitigate the response effect in eliciting the WTP and to increase the statistical efficiency of the analysis of the WTP data, we employed a one-and-one-half-bounded dichotomous choice question format. Furthermore, we used a spike model to model the WTP responses with zero observations. The mean yearly WTP for the policy implementation is computed to be KRW 2258 (USD 2.04) per household, which is statistically significant at the 1% level. The national annual value amounts to KRW 42.8 billion (USD 38.6 million). This value can be taken as an indication of the external benefit of the reduction in GHG emissions by means of the expansion.     

燃气-蒸汽联合循环发电成本分析

联合循环的发电成本是制约其发展的因素之一。文中针对一联合循环电站,应用热经济学方法,分析各设备的发电成本以及不同天然气价格条件下的发电成本,为投资者或决策者提供参考。     

Willingness to pay for reduced visual disamenities from offshore wind farms in Denmark

Expansion of offshore wind power plays a significant role in the energy policies of many EU countries. However, offshore wind farms create visual disamenities. These disamenities can be reduced by siting wind farms at larger distances from the coast—and accepting higher costs per kWh produced. In this paper willingness to pay for reducing the visual disamenities from future offshore wind farms is elicited using the economic valuation method Choice Experiments. The valuation scenario comprises the location of 720 offshore wind turbines (equivalent to 3600 MW) in farms at distances equal to: 12, 18 or 50 km from the shore, relative to an 8 km baseline. Using a fixed effect logit model average willingness to pay amounts were estimated as: 46, 96 and 122 Euros/household/year for having the wind farms located at 12, 18 and 50 km from the coast as opposed to 8 km. The results also reveal that WTP deviates significantly depending on the age of respondents and their experiences with offshore wind farms.