TY - JOUR
T1 - Consumer preferences for electricity tariffs
T2 - Does proximity matter?
AU - Kalkbrenner, Bernhard J.
AU - Yonezawa, Koichi
AU - Roosen, Jutta
N1 - Publisher Copyright:
© 2017 Elsevier Ltd
PY - 2017
Y1 - 2017
N2 - The introduction of renewable energy sources fosters the transformation to an energy system with distributed generation. This alters the relation between consumers and power generation sites, as generation and consumption spatially converge. It allows for new configurations within the energy sector and provides opportunities for marketing regional energy. We empirically investigate consumer preferences for electricity generation in proximity to end-users, focusing on the proximity of generation and providers, and present representative data for Germany. In a discrete choice experiment, a sample of 780 consumer households and 173 adopters of a renewable energy system (prosumers) chose from a range of different electricity tariffs. We estimate the willingness to pay for the following attributes: shares of regional generation, power providers, and electricity mixes. We find evidence in favor of regional production, but in spite of positive attitudes towards local generation from renewable sources, willingness to pay is not responsive to higher shares of regional generation. In addition, a preference for regional providers exists. The results show that renewable energy mixes are preferred, particularly a solar and hydro mix. Adopters state slightly more distinct preferences as compared to consumer households. Thus, we find there is potential for business models offering regionally generated electricity.
AB - The introduction of renewable energy sources fosters the transformation to an energy system with distributed generation. This alters the relation between consumers and power generation sites, as generation and consumption spatially converge. It allows for new configurations within the energy sector and provides opportunities for marketing regional energy. We empirically investigate consumer preferences for electricity generation in proximity to end-users, focusing on the proximity of generation and providers, and present representative data for Germany. In a discrete choice experiment, a sample of 780 consumer households and 173 adopters of a renewable energy system (prosumers) chose from a range of different electricity tariffs. We estimate the willingness to pay for the following attributes: shares of regional generation, power providers, and electricity mixes. We find evidence in favor of regional production, but in spite of positive attitudes towards local generation from renewable sources, willingness to pay is not responsive to higher shares of regional generation. In addition, a preference for regional providers exists. The results show that renewable energy mixes are preferred, particularly a solar and hydro mix. Adopters state slightly more distinct preferences as compared to consumer households. Thus, we find there is potential for business models offering regionally generated electricity.
KW - Discrete choice experiment
KW - Distributed energy
KW - Electricity labeling
KW - Regional electricity supply
KW - Renewable energy
KW - Willingness to pay
UR - http://www.scopus.com/inward/record.url?scp=85019107818&partnerID=8YFLogxK
U2 - 10.1016/j.enpol.2017.04.009
DO - 10.1016/j.enpol.2017.04.009
M3 - Article
AN - SCOPUS:85019107818
SN - 0301-4215
VL - 107
SP - 413
EP - 424
JO - Energy Policy
JF - Energy Policy
ER -