On the preferences for an environmentally friendly and fair energy transition: A stated choice experiment for Germany

Abstract

Based on data from a stated choice experiment in Germany, this paper empirically examines individual preferences for several components of three hypothetical energy policy packages and the status quo policy package of the German energy transition. Our econometric analysis with mixed logit and latent class logit models reveals a high preference for higher targeted shares of renewable energies and for the nuclear phase-out. With respect to the allocation of energy policy costs, we find that the polluter-pays rule is significantly preferred over the ability-to-pay and equal-pay rules. Furthermore, citizens have a significantly positive preference for the financial support for low-income households. These results suggest a strong support for environmentally ambitious energy policy measures that are additionally associated with a fair burden sharing of the corresponding costs. In terms of preference heterogeneity, our empirical analysis reveals that political identification plays an important role for the preferences for environmentally ambitious energy policy measures. Furthermore, high equivalent income has a significantly negative effect on the preferences for the ability-to-pay rule, suggesting the relevance of economic self-interest. In addition, our empirical analysis reveals a strong relevance of trust (besides altruism and perceived unfair cost distribution) for the preferences for social cushioning. This result suggests that it is important for policymakers to convince the population that such social cushioning measures are actually implemented.