Mechanisms to promote household investment in wind energy: A national experimental survey

Abstract

Citizen investment into wind energy is conducive to public acceptance and can contribute to closing the renewable energy investment gap, while promoting corporate social responsibility. This study addresses this topic and conducts a novel choice experiment to determine the investment preferences of a representative sample of 1,009 Irish households. First, the paper investigates the attributes determining willingness to invest into wind farms. Second, it considers to what extent public attitudes and proximity to wind farms affect investment. Third, it assesses the suitability of five specific investment mechanisms. Through these activities the findings enhance current understanding of the opportunities and challenges concerning the design of citizen investments within a centralised system which is predominantly reliant on incumbent wind energy developers. The findings show that the risk of loss and the expected annual return on investment are the main attributes determining investment decisions, but secondary criteria, such as the project location and ownership characteristics, also affect willingness to invest. Respondents living within 10 km of a wind farm or expressing support for wind energy are significantly more likely to consider investing. Recommendations include interventions to encourage joint ventures between community organisations and specialised developers as a mechanism to promote investment in wind farms.