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Daily Overview |
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Renewable Energy 4: Evidence from Different Choice Modelling
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Public support for solar power development in Japan: a choice experiment 1Tokyo University of Marine Science and Technology, Japan; 2Kyushu University, Japan Solar photovoltaic (PV) deployment is expanding rapidly in Japan, yet concerns about landscape change, disaster risk, and biodiversity impacts may undermine social acceptance. This study quantifies residents’ preferences for solar PV promotion policies using a discrete choice experiment. Choice tasks varied five attributes: visibility of solar panels within residential areas, changes in landslide risk, negative effects on wildlife, additional CO2 emission reductions (3–7%), and a monthly increase in the electricity bill (50–2,000 yen). We estimate a mixed logit model with random coefficients to capture preference heterogeneity and derive willingness-to-pay (WTP) measures. To examine observed heterogeneity, we regress individual-specific parameters on sociodemographic characteristics, and we assess geographic clustering in WTP using hot spot analysis. The results show strong aversion to localized externalities. Median WTP to avoid increased landslide risk and negative wildlife impacts is −47.6 yen/month and −41.3 yen/month, respectively. Respondents value climate benefits, with positive WTP for additional CO2 reductions (1.99 yen/month per percentage point). Landscape visibility has no significant average effect but exhibits substantial heterogeneity, indicating that visual impacts are highly context dependent. Cost produces the largest disutility and varies widely across individuals. Spatial analyses reveal non-uniform geographic patterns in WTP. The findings suggest that socially sustainable solar expansion requires stricter attention to disaster and ecological risks, transparent communication of expected CO2 reductions, and geographically targeted siting and mitigation strategies. More than just solar panels: Homeowner preferences for photovoltaic ownership models and product bundles University of Kassel, Germany This study investigates homeowner preferences for residential photovoltaic (PV) product bundles in a market characterized by increasingly diverse technologies and service offerings. Drawing on a discrete choice experiment (DCE) with 842 German homeowners, we estimate preferences and willingness to pay for ownership versus rent-to-own models, as well as for PV systems with and without battery storage. We further examine demand for electricity cloud services and assess how their attractiveness varies under two alternative framings: personal social environment and regional context. The results indicate a clear preference for purchasing PV systems over rent-to-own models, with estimated willingness to pay for rent-to-own falling below current market prices. This suggests that such models would need to become more affordable to significantly contribute to future PV adoption. In addition, the inclusion of battery storage increases the attractiveness of PV systems regardless of the ownership model. Finally, homeowners show a positive preference for regionally framed electricity cloud services, indicating that combining PV systems with peer-to-peer electricity sharing can increase participation in such schemes. Wind or Solar? Experimental Evidence on Public Preferences 1Norwegian University of Life Sciences, School of Economics and Business; 2Menon Economics Meeting national climate targets while accommodating rising electricity demand requires more renewable energy, implying further encroachment on natural areas and associated environmental external costs. While previous studies have examined the local environmental costs of wind power, ground-mounted solar power has received considerably less attention. Existing comparisons of the two technologies typically vary technology alongside other design features, leaving technology-specific costs partially confounded with design-specific responses. We provide the first causal estimates of the technology-specific local environmental costs of renewable energy development using a randomized split-sample discrete choice experiment with 1,563 respondents in Norway. Respondents are randomly assigned to one of two surveys that are identical in attributes, levels, and structure, differing only in whether the hypothetical projects are labeled as wind or solar power. Solar power generates lower local environmental costs than wind power, although both technologies entail substantial costs. Encroachment on undisturbed nature contributes most to welfare losses for solar power, while proximity to installations is the largest contributor for wind power. Welfare losses are also higher when developments are spatially dispersed rather than concentrated, conditional on equal electricity output. Estimated environmental external costs per kWh over a 10-year period for a 0.6 TWh development in an average municipality in the study region range from ¢0.28–¢1.09 per kWh for solar power and ¢0.78–¢1.54 per kWh for wind power, depending on nature protection, spatial concentration, population size, and proximity. A nature tax may help internalize these external costs and support more efficient and socially acceptable renewable energy deployment. Heterogeneity in preferences for vehicle-to-grid charging tariffs: A Stated Preference Analysis for Germany University of Kassel, Germany The ongoing transformation of the energy system in Germany is fundamentally changing how energy is generated, balanced, and consumed. The Vehicle-to-Grid (V2G) technology, through which electric vehicles not only consume electricity but can also feed it back into the grid, offers a promising solution for stabilizing the energy grid and enhancing the integration of renewable energy. This study empirically examines individuals’ preferences for V2G charging tariffs us ing a stated choice experiment conducted with 6,198 citizens in Germany. Respondents chose between three different V2G tariffs and an opt-out choice option, with tariffs varying in attrib utes such as minimum monthly plug-in hours, fixed and variable remuneration, and guaranteed minimum range. Using mixed logit models in willingness-to-accept (WTA) space, the results reveal a strong preference for the opt-out option, suggesting general skepticism toward V2G. However, respondents exhibit clear trade-offs: They are willing to forgo 2.33 € in fixed remu neration for an additional kilometer of guaranteed range, but require 1.32 € as a compensation for an extra hour of minimum plug-in time. Our empirical analysis also highlights the presence of strong heterogeneity in preferences based on individual characteristics. For example, among respondents with EV purchase intentions, WTA for a V2G charging tariff varies by vehicle ownership. Our findings provide valuable insights for policymakers aiming to design effective and widely accepted V2G tariffs, emphasizing the importance of financial incentives, flexible tariff structures, and targeted awareness campaigns to foster participation in V2G programs. | ||

