Willingness to Pay for Renewably-Sourced Home Heating in the Fairbanks North Star Borough

Author:

Roberts Georgia K.1,Pride Dominique J.2,Little Joseph M.3,Mueller Julie M.3

Affiliation:

1. School of Earth and Sustainability, Northern Arizona University, Flagstaff, AZ 86011, USA

2. Alaska Center for Energy and Power, University of Alaska Fairbanks, Fairbanks, AK 99775, USA

3. W.A. Franke College of Business, Northern Arizona University, Flagstaff, AZ 86011, USA

Abstract

Space heating is a necessity in Alaska; however, the use of heating fuels carries both economic and environmental costs. In the Fairbanks North Star Borough (FNSB), Alaska, most households utilize heating fuel oil as a primary source for home heating and firewood as a secondary source. In the FNSB, wood-burning devices are the principal source of fine particulate matter with a size of 2.5 microns or less, (PM2.5), but firewood is less expensive when compared to heating fuel oil. The FNSB has been designated as a nonattainment area for PM2.5, which has been linked to negative cardiopulmonary impacts and other adverse health consequences. Electric thermal storage heaters (ETSH) could help solve the PM2.5 problem by displacing firewood used for residential space heating. We use dichotomous choice contingent valuation (DC-CV) to estimate willingness to pay (WTP) for an ETSH program which would allow FNSB residents to offset 100 gallons of heating fuel oil annually. Certainty correction is used to control for the presence of hypothetical bias. We find median WTP is USD 33.98 without certainty correction and USD 9.75 with certainty correction. Our results indicate that implementation of a special ETSH electricity rate based on the WTP estimate may lead to broader adoption of ETSH for space heating, which could improve air quality, reduce fuel poverty, and reduce the carbon footprint of residential space heating.

Funder

National Science Foundation

Publisher

MDPI AG

Subject

Energy (miscellaneous),Energy Engineering and Power Technology,Renewable Energy, Sustainability and the Environment,Electrical and Electronic Engineering,Control and Optimization,Engineering (miscellaneous),Building and Construction

Reference56 articles.

1. FNSB-APCC (2023, January 12). Air Quality Comprehensive Plan: Framework for Healthy Air, People, and Economy. By Fairbanks North Star Borough Air Pollution Control Commission. Available online: http://fnsb.us/transportation/AQDocs/FNSBAPCC.

2. Carlson, T., and Zhang, W. (2015). Analysis of Fairbanks 2013–2015 Home Heating Surveys, Sierra Research.

3. Source Apportionment of PM2.5 in Subarctic Airshed—Fairbanks Alaska;Ward;Aerosol Air Qual. Res.,2012

4. Course-Fine and Day-Night Differences of Water-Soluble Ions in Atmospheric Aerosols Collected in Christchurch and Auckland, New Zealand;Wang;Atmos. Environ.,2002

5. A Spatial Model of Urban Winter Woodsmoke Concentrations;Larson;Environ. Sci. Technol.,2007

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