Iranian Energy Economics

Application of Double-Bounded Dichotomous Choice Contingent Valuation to Study the Possibility of Using New Energy in Iran's Power Generation

Document Type : Research Paper

Authors

soroush Kiani 1
Javad Shahraki 2
Ali Sardar Shahraki 3
Ahmad Akbari 4

1 PhD Student of Agricultural Economics, Sistan and Baluchestan University

2 Associate Professor of Economic Sciences, University of Sistan and Baluchestan

3 University of Sistan and Baluchestan

4 Professor of Agricultural Economics, University of Sistan and Baluchestan

https://doi.org/10.22054/jiee.2017.7998
Abstract
Despite self-replenishing nature and lack of negative external effects of new energies, the energies entail higher costs than the conventional energy resources. The governments cannot afford these extra costs, and it needs to take part the public. This study examines extent of public participation in the funding of these costs. The study employed the double-bounded dichotomous choice (DBDC) contingent valuation (CV) method. We release 400 questionnaires under five corresponding prices. Two cost-related questions were asked from each participant (once twice the original price, and once half of that). The interviewees determined the extra cost they would incur, taking into account seven factors, namely: regional economy, demand for electricity, environmental considerations, diplomatic relations, safety, ethics, and the economy.  The results suggest a willingness-to-pay of 46360 Rials (≈1.2USD) per month. The findings also indicate that the items including willingness to new energies, importance of environment and influence of the energies have the highest effect on the willingness of payment.

Keywords

Renewable Energies
Electricity
Double-Bounded Dichotomous Choice Contingent Valuation
Willingness to Pay (WTP)
Iranian Energy Economics
Volume 6, Issue 22 - Serial Number 2
Summer 2017
Pages 133-163

  • Receive Date 04 July 2017
  • Accept Date 24 October 2017
  • First Publish Date 24 October 2017
  • Publish Date 21 March 2017

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