Electricity supply preferences in Europe: Evidence from subjective well-being data

• Published in: Resource and energy economics 2014-11, Vol.38, p.38-60
• Main Authors: Welsch, Heinz, Biermann, Philipp
• Format: Article
• Language: English
• Subjects: Applied sciences; Economic data; Electric energy; Electric power; Electricity; Electricity generation; Electricity mix; Energy; Energy economics; Energy policy; Energy transition; Exact sciences and technology; Fukushima; General, economic and professional studies; Methodology. Modelling; Natural energy; Nuclear accidents; Nuclear accidents & safety; Nuclear power; Nuclear power generation; Power supply; Preference; Preferences; Psychological factors; Quality of life; Solar power generation; Solar wind; Studies; Subjective well-being; Wind power
• ISSN: 0928-7655; 1873-0221
• DOI: 10.1016/j.reseneeco.2014.05.003

•We estimate the relationship between the electricity mix and subjective well-being (SWB) in Europe.•These relationships represent preferences over costs, safety, cleanness and other attributes.•SWB varies systematically and significantly with differences in the electricity mix.•A greater share of solar & wind relative to nuclear power is associated with greater SWB.•Environmental and safety concerns are of major importance in electricity supply preferences. We use survey data for 139,517 individuals in 25 European countries, 2002–2011, to estimate the relationship between subjective well-being (SWB) and production shares of various electricity generation technologies. The estimated relationships are taken to represent preference relationships over attributes of electricity supply systems (costs, safety, environmental friendliness, etc.). Controlling for a variety of individual and macro-level factors, we find that individuals’ SWB varies systematically and significantly with differences in the electricity mix across countries and across time. Among other results, we find that a greater share of solar & wind power relative to nuclear power and electricity from coal and oil is associated with greater SWB at all levels of income and that the implied preference for solar & wind power over nuclear power has risen drastically after the Fukushima nuclear accident.