Abstract

Utilizing a discrete choice experiment with 250 US electricity consumers, this study estimates willingness to pay (WTP) for each percentage increase in carbon dioxide captured and the preferred carbon management technique—permanent storage or industrial utilization. Results from an alternative-specific conditional logit model suggest a WTP of $0.13 for each percent increase in carbon capture, and an additional $5-$6 per month for industrial utilization over storage. In contrast, the estimated WTP for each percent increase in renewable energy is $0.25, suggesting that consumers value renewable energy nearly twice as much as carbon capture. These preliminary results indicate some preference for carbon capture, though not as strong as for cleaner energy, with a clearer preference for carbon utilization than storage. Further research is recommended to investigate variations in these preferences based on individual characteristics.

Department(s)

Economics

Publication Status

Open Access

Comments

National Science Foundation, Grant 2308737

Keywords and Phrases

Carbon capture and storage; Carbon capture and utilization; Decarbonization; Energy transition; Renewable energy; Willingness-to-pay

International Standard Serial Number (ISSN)

2772-6568

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2025 Elsevier, All rights reserved.

Publication Date

01 Mar 2025

Download

Full Text Link

Included in

Economics Commons

Share

 
COinS