Journal
ENERGY RESEARCH & SOCIAL SCIENCE
Volume 2, Issue -, Pages 90-101Publisher
ELSEVIER
DOI: 10.1016/j.erss.2014.04.003
Keywords
Choice Experiments; Cooperatives; Energy transition
Categories
Funding
- DZ Bank-Stiftung [S020/10198/11]
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With liberalization in 1998, numerous firms have entered the German retail electricity market, including newly formed consumer cooperatives. Based on Transaction Cost Economics, we develop a theoretical framework seeking to explain preferences for electricity supplied by cooperatives from a consumer perspective. Drawing on a convenience sample of 287 German electricity consumers and Choice Experiment data from an online survey, we estimate Willingness-to-Pay values for organizational attributes of electricity suppliers, while accounting for observed and unobserved heterogeneity. Consumers in the sample exhibit a large Willingness-to-Pay for renewable energy. Our results also indicate a substantial Willingness-to-Pay for transparent pricing, participation in decision making, and local suppliers. Democratic decision making - a distinct feature of cooperatives - exhibits positive Willingness-to-Pay values for approximately one fifth of the sample. Taken together, our findings suggest a slightly higher Willingness-to-Pay for electricity produced by cooperatives. Limitations of applied sampling and other important aspects of energy transition are also discussed. (C) 2014 Elsevier Ltd. All rights reserved.
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