Evaluating consumer preference and willingness to pay for low emission electricity: Evidence from a national choice experiment in the US

A-Tier
Journal: Energy Economics
Year: 2025
Volume: 148
Issue: C

Authors (2)

Ahmed, Bruktawit M. (not in RePEc) Fikru, Mahelet G. (Missouri University of Science)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study examines consumer preferences for renewable energy and carbon capture technologies through a choice experiment involving 1200 nationally representative respondents in the US. The analysis estimates willingness to pay (WTP) for increases in renewable energy content, carbon capture, and strategies for managing captured carbon, such as geological storage or industrial utilization. Results reveal a strong preference for low-emission electricity products, with WTP estimates ranging from $2.9 to $4.1 per month for a 10 % increase in renewable content and $0.50 to $2.3 for a 10 % increase in carbon capture. Respondents most preferred carbon capture and utilization for managing emissions, with a WTP ranging from $2 to close to $7 per month. Tax credits positively influenced preferences, while higher electricity bill increases led to aversion. These findings provide insights for policymakers crafting decarbonization strategies that balance clean energy adoption, carbon management, and affordability.

Technical Details

RePEc Handle
repec:eee:eneeco:v:148:y:2025:i:c:s0140988325004773
Journal Field
Energy
Author Count
2
Added to Database
2026-01-25