Consumers' Willingness to Pay for Renewable and Nuclear Energy: A Comparative Analysis between the US and Japan
“Consumers' Willingness to Pay for Renewable and Nuclear Energy: A Comparative Analysis between the US and Japan” (with Kayo Murakami, Takanori Ida, and Makoto Tanaka), Energy Economics, 50, July 2015, pp. 178-189.
We investigate through a survey-based choice experiment US and Japanese consumer preferences for two alternative fuels, nuclear and renewable sources, as energy sources that have potential to reduce GHG emissions. The results for the US are similar across the four states sampled concerning consumers’ WTP for the reduction of air emissions: people are willing to pay approximately $0.30 per month for a 1% decrease in GHG emissions. Second, the average consumer expresses a negative preference for increases in nuclear power in the fuel mix in both countries. Japanese consumers have a stronger aversion to nuclear energy than US consumers. Third, US and Japanese consumers will pay more for emissions reduction with the use of renewable sources. Finally, we have shown that results like those found in this study can be useful in helping to set parameters for renewable energy policies like FIT rates and RPS stringency.
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