Valuation of Environmental Externalities in China’s Coal-fired Power Generation: A Latent Class Approach

DOI

10.2991/seee-15.2015.15How to use a DOI?

Keywords

coal-based power sector; environmental externalities; choice model; willingness to pay; China

Abstract

This paper applies the Latent Class (LC) approach to investigate households’ preferences on air quality and study environmental externalities in China’s coal-based power sector. We conduct a choice experiment where people are asked to choose among three hypothetical air quality improvement options and status quo characterized by different attributes. Reduction of CO2 emissions and PM2.5 (dust emissions), acid rain (SO2 and NOx emissions) and additional electricity bill are presented to respondents as attributes. Our results show that all levels of attributes were statistically significant and positive contributors to welfare. The results implies that the households in China are willing to pay an additional electricity bill for air quality improvement related to coal-based power sector, and willing to pay more for better air quality.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Qiong Cai
AU  - Xiaoli Zhao
AU  - Yanan Hu
AU  - Kaiyan Luo
PY  - 2015/10
DA  - 2015/10
TI  - Valuation of Environmental Externalities in China’s Coal-fired Power Generation: A Latent Class Approach
BT  - Proceedings of the 2015 International Conference on Sustainable Energy and Environmental Engineering
PB  - Atlantis Press
SP  - 57
EP  - 61
SN  - 2352-5401
UR  - https://doi.org/10.2991/seee-15.2015.15
DO  - 10.2991/seee-15.2015.15
ID  - Cai2015/10
ER  -