Conference Agenda

Scope sensitivity is a key validity criterion of stated preference (SP) studies. However, little is known about its underlying determinants, especially in the context of low-carbon energy technologies (LCET). In particular, the role of spatial characteristics in shaping willingness to pay (WTP) sensitivity to scope remains largely unexplored. This is the first valuation study to investigate how spatial factors interact with external scope effects on WTP for emerging LCETs, i.e., Carbon Capture and Storage (CCS). The study proposes a new behavioral model, conceptualizing the interplay between spatial factors and technology-scope in preference formation. The framework is empirically tested using Danish representative survey data on WTP for CCS with varying CO2 reduction potentials. The SP data is combined with high-resolution spatial information on respondents’ proximity to energy infrastructure and environmental features. We find significant interaction effects between CCS scope and spatial variables. Increased local forest coverage is associated with higher WTP for larger-scope CCS, whereas solar farm exposure significantly reduces WTP for CCS with smaller emissions reduction potential. The observed patterns indicate that spatial responsiveness is a function of technology-scope, leading to variations in spatial-dependent WTP scope elasticities. The findings highlight the importance of accounting for spatial-scope interactions in SP research.