Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2014:14: Determinants of willingness-to-pay for renewable energy: does the age of nuclear power plant reactors matter?

Pierre-Alexandre Mahieu (), Hermann Pythagore Pierre Donfouet and Bengt Kriström ()
Additional contact information
Pierre-Alexandre Mahieu: LEMNA, Postal: LEMNA, University of Nantes, Chemin de la Censive du Tertre France, 44322 Nantes cedex
Hermann Pythagore Pierre Donfouet: CREM, Postal: UMR CNRS 6211, University of Rennes I, 7 place Hoche, 35 065, Rennes cedex France
Bengt Kriström: CERE, Postal: SLU, 901 87 Umeå, Sweden

Abstract: Many countries are facing a dilemma over whether to extend the lives of their old reactors or make costly capital investments on Renewable Energy (RE). This paper explores the determinants of Willingness-To-Pay (WTP) for RE in France by means of a contingent valuation question that was included in a large web survey organized by the OECD. The main contribution of our paper is to test whether people living close to a reactor are sensitive to the age of the reactor. We find that the age of the reactor has a positive effect on WTP for RE.

Keywords: Contingent valuation; nuclear power plant; renewable energy

JEL-codes: C82; I10; Q21

19 pages, October 13, 2014

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