This project examines households’ preferences and willingness to pay for different forms of green electricity. Using an incentivised choice experiment with 6,482 Swiss households, it studies how energy source and production location shape demand for renewable electricity, including preferences for Swiss, European, and regionally produced power.
This project investigates households’ preferences and willingness to pay for different forms of green electricity. It is based on an incentivised experiment with 6,482 Swiss households, in which participants repeatedly chose between electricity packages generated from different renewable and non-renewable sources.
A particular focus is placed on the geographical origin of electricity and on whether consumers value electricity produced in Switzerland or in their own region more highly than electricity from other European sources. The study also examines differences between consumer groups, including households with particularly strong pro-environmental preferences.
The findings indicate that Swiss hydropower, which is the typical default option in the Swiss electricity mix, is the most popular energy source and generates the highest average willingness to pay. A segment of consumers with pronounced pro-environmental preferences is willing to pay more for solar power than for hydropower, whereas no comparable premium is observed for wind power. Electricity generated from European sources is valued substantially less than electricity from Swiss sources, while additional regional differentiation does not increase willingness to pay further.
The project contributes evidence on how the type and origin of electricity affect consumer demand and provides insights relevant to the design and marketing of green electricity products.
