Assessing demand for green electricity products amongst upper-middle income Western Cape households a contingent valuation study

Master Thesis

2013

Permanent link to this Item
Authors
Journal Title
Link to Journal
Journal ISSN
Volume Title
Publisher
Publisher

University of Cape Town

License
Series
Abstract
The study presented in this paper examines the demand for green electricity products amongst upper-middle income Western Cape households. A social cost-benefit analysis to inform electricity investment planning requires the environmental benefit of using green electricity to be expressed in monetary terms. Since existing markets trade in electricity as a homogenous good, market data is of little use in this regard, and non-market valuation approaches are required. This study seeks to answer three key questions: To what extent would upper-middle income households in the Western Cape Province be willing to purchase premium-priced green electricity products? What is the maximum amount that a typical upper-middle income Western Cape household would be willing to pay for such a green electricity product? And: What are the demographic and attitudinal characteristics of adopting households and their members? To answer these questions the contingent valuation methodology was employed, using primary data from a survey (n=464) conducted in Cape Town during April and May of 2012. This survey sought to assess WTP using a hypothetical market, and gathered data on eleven demographic and attitudinal factors selected as possible determinants of WTP on the basis of a literature review.
Description

Includes abstract.


Includes bibligraphical references.

Keywords

Reference:

Collections