Willingness to pay for renewable energy by the residential sector in Aguascalientes

Abstract

Using the discrete choice experiment method for economic valuation, this thesis explores the preferences and willingness to pay (WTP) that households from the city of Aguascalientes have towards distinct economic and environmental attributes that a supply of residential renewable energy may entitle. The results show that there is a positive WTP for renewable residential energy. Further, households have a preference for solar energy over biomass or a mix of both. The results also show that households assign more value to the creation of new jobs than to any other environmental attribute. Finally, with the means of a split sample and the making of a treatment in the study, it is found that respondents show distinct valuation if more information is given to them.