If one goes up, another must come down: A latent class hybrid choice modelling approach for understanding electricity mix preferences among renewables and non-renewables

Borriello, Antonio; Burke, Paul F.; Rose, John M.

doi:10.1016/j.enpol.2021.112611

Cited by 12 publications

(5 citation statements)

References 61 publications

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“…The results indicate that, with all other influences held constant, consumers derive more utility from renewable than from natural gas, which is in line with other studies, especially in the field of renewable electricity [51,53,[68][69][70]. Interestingly, the criticism of biogasin particular the usage of energy crops, as cited often in the 'food vs. fuel' debate-seems to have died down, as respondents favored biomethane over SNG.…”

Section: Consumers Prefer Renewable Over Natural Gas and Biomethane O...supporting

confidence: 87%

“…In other words, if the price attribute is held at zero for all product alternatives, then price no longer factors into the consumer's choice, making it possible to calculate the real aversion. Past research, especially in the field of renewable electricity tariffs, which are the products most similar to the less researched renewable gas tariffs, has shown that consumers prefer renewable-based over fossil-based tariffs [51,53,[68][69][70]. Put differently, consumers derive more utility from renewables than from fossil fuels.…”

Section: Development Of Hypothesesmentioning

confidence: 99%

“…Given that SNG harnesses surplus electricity from renewable energies (especially wind, hydro, and solar) and biomethane uses biomass, these insights might be transferable to SNG/biomethane. However, studies from other national contexts (e.g., [69], Australia) have reported that biomass-based electricity is favored over other renewables; indeed, newer studies from Germany indicate that the previously critical perception of biomass seems to have faded [16,71]. These considerations, together with the novelty of SNG technology and the consequent consumer knowledge gaps that could intimidate a consumer, yield the second hypothesis:…”

Section: Development Of Hypothesesmentioning

confidence: 99%

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Synthetic natural gas in the private heating sector in Germany: match or mismatch between production costs and consumer willingness to pay?

Rilling

2024

Energ Sustain Soc

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Background The residential heating sector in many European countries requires a fundamental transformation if it is to become climate neutral. Besides the introduction of efficiency measures and updating heating systems, scholars and practitioners consider replacing fossil fuels in existing heating systems a viable approach. Drop-in renewable gases such as biomethane and synthetic natural gas (SNG) cause considerably fewer carbon dioxide (CO2) emissions than natural gas and can be used in natural gas boilers, the dominant heating system in many European countries. To move the ongoing debate around e-fuels forward, this study reports on a Discrete Choice Experiment with 512 respondents in Germany that analyzed consumer preferences and willingness to pay (WTP) for SNG. I build on these insights by comparing WTP to the production costs, making evidence-based decision-making possible. Results The results show that consumers prefer renewable gases over natural gas. Comparing the two types of renewable gases, SNG and biomethane, reveals that consumers clearly favor the latter despite the criticism it has come under in the last 10–15 years. Consumers show a surprisingly high WTP for increasing shares of SNG, with premia of 40 to almost 70% over a natural gas-based tariff. Comparing production costs to the WTP reveals that only tariffs with small shares of SNG (5% and 10%) can be offered at cost-covering prices. Conclusions Given the urgent need for a fundamental transition of the residential heating sector, marketers and policymakers should consider carefully whether it is worth channeling a rather unknown and expensive product like SNG into the voluntary market for heating gas, especially as biomethane is already established in the market and clearly a cheaper and more popular alternative.

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Section: Consumers Prefer Renewable Over Natural Gas and Biomethane O...supporting

confidence: 87%

Section: Development Of Hypothesesmentioning

confidence: 99%

Section: Development Of Hypothesesmentioning

confidence: 99%

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Synthetic natural gas in the private heating sector in Germany: match or mismatch between production costs and consumer willingness to pay?

Rilling

2024

Energ Sustain Soc

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“…In particular, coal accounts for more than 50% of China's energy consumption, much higher than the proportion of coal in the global energy consumption structure [5]. Therefore, nuclear energy will play an indispensable role in the future as China achieves its "Dual-Carbon" goal and contributes to the global realization of carbon neutrality [6].…”

Section: Opportunities For Nuclear Energy Developmentmentioning

confidence: 99%

Analysis on the high-quality development of nuclear energy under the goal of peaking carbon emissions and achieving carbon neutrality

Chen

Zhang

2022

Carb Neutrality

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Striving to peak carbon emissions and achieve carbon neutrality (known as the "Dual-Carbon" goal) is an inevitable requirement for elevating the environmental resource constraints and realizing harmonious coexistence between the mankind and the earth. In the energy system, nuclear energy offers various advantages, such as high energy density, low carbon emission, strong environmental adaptability and large potential for energy co-generation and co-supply. It is one of the supporting energy sources for the transformation and upgradation of the energy system to a clean, efficient and low-carbon way. In this paper, the opportunities and challenges for innovation-driven nuclear energy development in the fields of electricity generation, hydrogen production, heat supply and seawater desalination under the goal of "Dual-Carbon" are discussed and analyzed. Besides, the relevant research on improving the safety and economy of the pressurized water reactor (PWR) and sodium-cooled fast reactor (SFR) conducted by the Nuclear THermal–hydraulic research Lab (NuTHeL) of Xi’an Jiaotong University is briefly introduced.

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“…Policy goals focussing on increasing the proportion of renewable generation in the energy mix, maintaining or increasing energy security, and minimising cost constitute the energy trilemma (Brügger et al, 2015; Demski et al, 2017). It has been shown in numerous studies that consumers have a positive WTP for increased renewable energy generation technologies (Borriello et al, 2021; Ma & Burton, 2016; Mewton & Cacho, 2011; Soon & Ahmad, 2015; Sundt & Rehdanz, 2015). The Appendix S1 lists papers post‐2011 highlighting the factors influencing the WTP for green energy with a consensus that households on average have a positive WTP for renewables.…”

Section: Introductionmentioning

confidence: 99%

Managing the energy trilemma of reliability, affordability and renewables: Assessing consumer demands with discrete choice experiments

Tocock

Tinch

MacDonald

et al. 2023

Aus J Agri & Res Econ

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In response to the looming climate crisis, many countries are adopting technologies to reduce the accumulation of greenhouse gases. However, national energy policies are often multiobjective and resolution deeply divisive. The result is a policy trilemma between the energy mix and the trade‐offs with other policy objectives, including cost and reliability. Utilising a discrete choice experiment (DCE), the objective of this study is to explore Australian household preferences for alternative electricity contracts containing features reflecting changes in future energy policy. The first set of features include investments in renewable generation and community‐based energy storage. The second set of features reflect demand‐side management policies, including installing smart meters and consumption limits being imposed on households during peak demand. Two versions of the DCE were developed to obtain both willingness to pay and willingness to accept estimates for the same features. In line with the literature, differences in the two sets of estimates were observed, with the willingness to accept estimates being statistically larger for some features. These dollar value measures can be used to support public policy decision‐making – the choice of which depending on the context of the policy problem being considered.

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If one goes up, another must come down: A latent class hybrid choice modelling approach for understanding electricity mix preferences among renewables and non-renewables

Cited by 12 publications

References 61 publications

Synthetic natural gas in the private heating sector in Germany: match or mismatch between production costs and consumer willingness to pay?

Synthetic natural gas in the private heating sector in Germany: match or mismatch between production costs and consumer willingness to pay?

Analysis on the high-quality development of nuclear energy under the goal of peaking carbon emissions and achieving carbon neutrality

Managing the energy trilemma of reliability, affordability and renewables: Assessing consumer demands with discrete choice experiments

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