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A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector


A wide range of climate change mitigation policies have been developed around the world and these policies have become one of the major concerns, however there is still debate among scientists about what are the main external benefits and how to account for them and prepare effective climate change mitigation policies that might be widely accepted by society in general. One of the main ways to assess external benefit of climate change mitigation in energy sector is to conduct Willingness to Pay (WTP) assessments for climate change mitigation options by households. There are many studies on WTP assessment for climate stability conducted in recent years. The paper surveys the existing literature on WTP for climate change mitigation policy in the energy sector. The aim of the paper is to identify the common variables across a varied set of WTP studies in order to establish a basis for comparison. The key variables selected for analysis of WTP studies for climate change mitigation in energy sector addressed in the paper are: the WTP assessment methods; the main attributes used for comparing alternatives in WTP studies, targeted climate change mitigation policies in energy sector, mathematical model used to estimate WTP, the main socio-demographic factors having impact on WTP for climate change mitigation policies. The analysis of WTP studies for climate change mitigation is grouped in two areas: renewables and energy efficiency measures in households. The paper provides analytical structure for future studies to evaluate the effects of variation in key comparative elements upon WTP.


Keywords: willingness to pay; WTP; climate change mitigation; renewables; energy efficiency improvements.


Streimikiene, D; Balezentis, T.; Alisauskaite-Seskiene, I.; Stankuniene, G.; Simanaviciene, Z. 2019. A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector. In Energies. Vol. 12, Issue 8, 1481; EISSN 1996-1073; https://doi.org/10.3390/en12081481; [AGORA (FAO)external link; AGRIS - Agricultural Sciences and Technology (FAO)external link; CAB Abstracts (CABI)external link; Chemical Abstracts (ACS)external link; Current Contents - Engineering, Computing & Technology (Clarivate Analytics)external link; DOAJ - Directory of Open Access Journalsexternal link; EconPapers (RePEc)external link; Ei Compendex / Engineering Village (Elsevier)external link; ETDE - Energy Technology Data Exchange (IEA)external link; Genamics JournalSeekexternal link; HINARI (WHO)external link; IDEAS (RePEc)external link; Inspec (IET)external link; Journal Citation Reports / Science Edition (Clarivate Analytics)external link; Julkaisufoorumi Publication Forum (Federation of Finnish Learned Societies)external link; LAPSE - Living Archive for Process Systems Engineeringexternal link; Norwegian Register for Scientific Journals, Series and Publishers (NSD)external link; RePEcexternal link; Science Citation Index Expanded - Web of Science (Clarivate Analytics)external link; Scopus (Elsevier)external link; Web of Science (Clarivate Analytics)external link].


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