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Contingent Valuation and Real Economic Commitments: Evidence from Electric Utility Green Pricing Programmes

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  • Brian Byrnes
  • Clive Jones†
  • Sandra Goodman‡

Abstract

This paper presents the findings of two 'green pricing' studies conducted to evaluate public support of utilities' investments in renewable energy technologies. These studies compared hypothetical WTP statements with actual payment commitments. The results of these studies indicate that the CVM can be an accurate indicator of an individual's WTP, but that it is an unreliable predictor of which individuals will actually pay. This has important implications for aggregating mean WTP estimates of the value of environmental benefits. It also suggests that market simulations can be useful for predicting programme participation rates when voluntary donations are used as a payment vehicle.

Suggested Citation

  • Brian Byrnes & Clive Jones† & Sandra Goodman‡, 1999. "Contingent Valuation and Real Economic Commitments: Evidence from Electric Utility Green Pricing Programmes," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(2), pages 149-166.
    • Handle: RePEc:taf:jenpmg:v:42:y:1999:i:2:p:149-166
    DOI: 10.1080/09640569911190
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    References listed on IDEAS

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    1. Hanemann, W., 1994. "Contingent Valuation and Economics," CUDARE Working Papers 198636, University of California, Berkeley, Department of Agricultural and Resource Economics.
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