Stated preferences towards renewable energy alternatives in Germany – do the consequentiality of the survey and trust in institutions matter?

Abstract

ABSTRACTThis research concerns the effect of consequentiality and trust in institutions on willingness to pay estimates towards the expansion of renewable energy in Germany. We use four information treatments which differ in terms of the information participants received prior to a discrete choice experiment. Treatments differ with respect to a consequentiality device and the institution which would be responsible for providing the good under evaluation. After finishing the choice tasks, respondents stated their perceived consequentiality and trust in institutions. We find perceived policy consequentiality to be strongly associated with the trust individuals have in both providing institutions. Moreover, compared to the treatments which did not highlight the consequences of the survey, participants are more inclined to perceive their responses to be at least somewhat consequential when the consequentiality device was presented. However, willingness to pay estimates do neither differ across treatments nor by the level of perceived consequentiality. We speculate that as the expansion of renewable energy is strongly debated with the public having a wide range of beliefs and political views, the requirements for consequential choices are not met.