Estimating Arizona residents' willingness to pay to invest in research and development in solar energy

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Abstract

We estimate Arizona residents' Willingness to Pay (WTP) to invest in a solar energy research and development fund using data obtained from a Dichotomous-Choice Contingent Valuation mail survey. We examine differences in WTP estimates using different categorizations for respondent uncertainty. We also employ both commonly used Maximum Likelihood and less frequently applied Bayesian estimation techniques. We find that respondent uncertainty has an economically significant impact on WTP estimates, while WTP estimates are robust to different estimation techniques. Our robust specification with strict uncertainty coding indicates the average Arizona household is WTP approximately $17 per month to invest in research and development in solar energy.

Original languageEnglish (US)
Pages (from-to)462-476
Number of pages15
JournalEnergy Policy
Volume53
DOIs
StatePublished - Feb 2013

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Keywords

  • Bayesian estimation
  • Contingent valuation
  • Solar energy

ASJC Scopus subject areas

  • Energy(all)
  • Management, Monitoring, Policy and Law

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