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'Amenity' or 'eyesore'? Negative willingness to pay for options to replace electricity transmission towers

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  • Giles Atkinson
  • Brett Day
  • Susana Mourato
  • Charles Palmer

Abstract

A frequent scenario in public decision-making is that of choosing between a number of proposed changes from the status quo. In such a case, stated preference surveys, such as the contingent valuation method, are often undertaken to assess the size of the benefits associated with each proposed change. For certain undesirable options, respondents may prefer the status quo; however, it may not be credible to directly elicit negative willingness to pay or willingness to accept to endure the change. This study, using contingent valuation, outlines an indirect means of measuring negative willingness to pay - for the problem of visual disamenity arising from alternative electricity transmission tower designs - based on the elicitation of indicators of how inconvenienced respondents would feel if a less preferred option were to replace the status quo; that is, the time and cost respondents were prepared to commit to opposing the change. The results show that taking account of negative willingness to pay matters and this significantly changes value estimates for some of the least liked options.

Suggested Citation

  • Giles Atkinson & Brett Day & Susana Mourato & Charles Palmer, 2004. "'Amenity' or 'eyesore'? Negative willingness to pay for options to replace electricity transmission towers," Applied Economics Letters, Taylor & Francis Journals, vol. 11(4), pages 203-208.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:4:p:203-208
    DOI: 10.1080/13504850410001674803
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    References listed on IDEAS

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    3. Petter Gudding & Gorm Kipperberg & Craig Bond & Kelly Cullen & Eric Steltzer, 2018. "When a Good Is a Bad (or a Bad Is a Good)—Analysis of Data from an Ambiguous Nonmarket Valuation Setting," Sustainability, MDPI, vol. 10(1), pages 1-16, January.
    4. Tang, Cheng Keat & Gibbons, Stephen, 2024. "Are friends electric? Valuing the social costs of power lines using house prices," LSE Research Online Documents on Economics 122635, London School of Economics and Political Science, LSE Library.
    5. Contu, Davide & Strazzera, Elisabetta & Mourato, Susana, 2016. "Modeling individual preferences for energy sources: The case of IV generation nuclear energy in Italy," Ecological Economics, Elsevier, vol. 127(C), pages 37-58.
    6. Aygul Ozbafli & Glenn P. Jenkins, 2015. "The Willingness To Pay By Households For Improved Reliability Of Electricity Service," Development Discussion Papers 2015-02, JDI Executive Programs.
    7. Soon, Jan-Jan & Ahmad, Siti-Aznor, 2015. "Willingly or grudgingly? A meta-analysis on the willingness-to-pay for renewable energy use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 877-887.
    8. Cohen, Jed J. & Moeltner, Klaus & Reichl, Johannes & Schmidthaler, Michael, 2016. "Linking the value of energy reliability to the acceptance of energy infrastructure: Evidence from the EU," Resource and Energy Economics, Elsevier, vol. 45(C), pages 124-143.
    9. Zaunbrecher, Barbara S. & Linzenich, Anika & Ziefle, Martina, 2017. "A mast is a mast is a mast…? Comparison of preferences for location-scenarios of electricity pylons and wind power plants using conjoint analysis," Energy Policy, Elsevier, vol. 105(C), pages 429-439.
    10. Riccardo Scarpa & Danny Campbell & W. George Hutchinson, 2007. "Benefit Estimates for Landscape Improvements: Sequential Bayesian Design and Respondents’ Rationality in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 83(4), pages 617-634.
    11. O'Garra, Tanya & Mourato, Susana & Pearson, Peter, 2008. "Investigating attitudes to hydrogen refuelling facilities and the social cost to local residents," Energy Policy, Elsevier, vol. 36(6), pages 2074-2085, June.

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