Abstract
In dealing with renewable electricity (RE), individuals are involved both as end-consumers on the demand side and as stakeholders (citizens) in the local production process on the supply side. Empirical evidence shows that in many countries, consumers are willing to pay a significant amount to facilitate adoption of RE. By contrast, environmental externalities are often the cause of strong opposition to RE adoption if local communities are involved as stakeholders in wind, solar or biomass investment projects. Looking at the literature on willingness to pay and on willingness to accept, we have investigated RE acceptance mechanisms. First, we have used the meta-analysis to assess the major determinants of RE acceptance on both demand and supply sides. Meta-analysis has provided some insights useful for managing field research on an onshore wind farm enlargement project located in the Umbria region. Meta-analysis and survey results confirm that the local community plays a central role in local RE acceptance. Furthermore, people who have previous experience with windmills require less compensation, or are willing to pay more, for RE development. Results suggest that these attributes should be included in future research to improve understanding of determinants of RE acceptance.
Highlights
Climate change has become a scientific problem of global interest in the 21st century [1]
We have addressed an important area of the economic analysis by investigating the literature on willingness to pay (WTP) and the willingness to accept (WTA) related to renewable electricity (RE)
We apply the meta-analysis for RE WTP/WTA studies both on the demand and supply sides
Summary
Climate change has become a scientific problem of global interest in the 21st century [1]. Climate change and resource depletion are real problems to be addressed for the welfare of society In this context, renewable electricity (RE) is essential to reduce polluting emissions, even if it can produce a range of environmental effects that might be detrimental to human activities, as attested by the “Not In My Back Yard” (Nimby) syndrome. Renewable electricity (RE) is essential to reduce polluting emissions, even if it can produce a range of environmental effects that might be detrimental to human activities, as attested by the “Not In My Back Yard” (Nimby) syndrome. Empirical evidence shows that in many countries, individuals are willing to pay to support RE These results seem to suggest that individuals demonstrate different behavior according to the role they take on. On the supply side, they are more affected by local negative externalities, while as consumers, on the demand side, they are more affected by global positive externalities due to RE
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