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Consumer willingness to pay for appliances produced by Green Power Partners

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  • Ward, David O.
  • Clark, Christopher D.
  • Jensen, Kimberly L.
  • Yen, Steven T.

Abstract

The U.S. Environmental Protection Agency's Green Power Partnership (GPP), has over 1200 members purchasing nearly 18billion kilowatt hours of green power annually. One possible motivation for firms to join the GPP is to raise their reputation for environmental quality among consumers. This research investigates the extent to which consumer preferences for a residential appliance are affected by information on whether or not the appliance manufacturer was a member of the GPP. Data for the study were obtained from a contingent choice exercise in an online survey of a national sample of adults. The results suggest that consumers are, on average, willing to pay an extra $48.52 to $70.95 for a refrigerator manufactured by a company that is a member of the GPP. These amounts appear to generally exceed the additional costs associated with using green power to manufacture a refrigerator and suggest that GPP could effectively be used to market consumer products.

Suggested Citation

  • Ward, David O. & Clark, Christopher D. & Jensen, Kimberly L. & Yen, Steven T., 2011. "Consumer willingness to pay for appliances produced by Green Power Partners," Energy Economics, Elsevier, vol. 33(6), pages 1095-1102.
    • Handle: RePEc:eee:eneeco:v:33:y:2011:i:6:p:1095-1102
    DOI: 10.1016/j.eneco.2011.02.003
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    Cited by:

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    3. Menegaki, Angeliki, N. & Olsen, Søren Bøye & Tsagarakis, Konstantinos P., 2016. "Towards a common standard – A reporting checklist for web-based stated preference valuation surveys and a critique for mode surveys," Journal of choice modelling, Elsevier, vol. 18(C), pages 18-50.
    4. Ladenburg, Jacob & Lutzeyer, Sanja, 2012. "The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6793-6802.
    5. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2019. "Willingness to Pay Price Premium for Smartphones Produced Using Renewable Energy," Sustainability, MDPI, vol. 11(6), pages 1-11, March.
    6. Zhou, Shan & Solomon, Barry D., 2021. "The interplay between renewable portfolio standards and voluntary green power markets in the United States," Renewable Energy, Elsevier, vol. 178(C), pages 720-729.
    7. Hyunju Shin & Alexander E. Ellinger & Helenka Hopkins Nolan & Tyler D. DeCoster & Forrest Lane, 2018. "An Assessment of the Association Between Renewable Energy Utilization and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 151(4), pages 1121-1138, September.
    8. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    9. Cheng, Peiyue & Wang, Tingsong, 2023. "Optimizing the emission control policies and trade-in program effects: A carbon-constrained closed-loop supply chain network model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    10. Nouira, Imen & Frein, Yannick & Hadj-Alouane, Atidel B., 2014. "Optimization of manufacturing systems under environmental considerations for a greenness-dependent demand," International Journal of Production Economics, Elsevier, vol. 150(C), pages 188-198.

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    More about this item

    Keywords

    Renewable energy; Willingness to pay; Contingent choice;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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