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Diplomatic

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ARTICLE IN PRESS
Energy Policy ] (]]]]) ]]]–]]]

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Energy Policy journal homepage: www.elsevier.com/locate/enpol

Valuing a wind farm construction: A contingent valuation study in Greece
Phoebe Koundouri, Yiannis Kountouris, Kyriaki Remoundou Ã
Department of International and European Economic Studies, Athens University of Economics and Business, 5th floor, Derigny Building, 76 Patision Street, 10434 Athens, Greece

a r t i c l e in fo

abstract

Article history:
Received 9 May 2008
Accepted 21 January 2009

Our analysis is based on data from a double-bounded dichotomous choice contingent valuation study implemented to elicit public attitudes towards renewable energy generation and their willingness to pay for the construction of a wind farm in the area of Messanagros in the island of Rhodes, Greece.
Results indicate that there are significant positive values deriving from the proposed project.
Respondents report a mean willingness to pay a premium in their bi-monthly electric bills of h8.86 for the sole purpose of the construction of the wind farm. The estimated economic benefits to the local population are weighed against the investment cost in a cost–benefit analysis to inform policy making and implications for EU energy policy are provided.
& 2009 Elsevier Ltd. All rights reserved.

Keywords:
Contingent valuation
Renewable energy
Wind farm

1. Introduction
Climate change is currently considered to be among the most serious threats to the natural environment and human health with potentially devastating worldwide economic costs (Stern,
2007). Since 80% of the greenhouse gases (GHG) originate from heating, power production and transport, one of the main energyrelated policy targets in the EU and around the world is the reduction of GHGs at their source. The vital role of energy from…...

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