Willingness to Pay for Environmental Sound Energy Systems

Abstract

Willingness to pay for environment soundness in voluntary base by Japanese people was analyzed. The analysis was based on two mail surveys. Respondents were asked their willingness to pay for green electricity through dichotomous choice with follow up questioning by the first survey launched in 2000. In the second survey launched in 2001-2002, respondents were asked their willingness to pay for small co-generation systems installed at their residences. The difference in the amounts of willingness to pay was small between the two surveys. The amounts of willingness to pay were estimated to be about 1,900 yen a month for a household in both surveys. Effects to willingness of household income and other factors were evaluated. The estimated parameters suggested that the household income affects the willingness, but the relationship was not so simple. As the income increased, the willingness increased stepwise and the household could be divided into three classes. The knowledge and support willingness for the reduction of green house gases emission arranged in Kyoto protocol were questioned moreover, and the relationship between those answers and willingness to pay for environmentally sound goods was revealed to be strong.