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Using stated preference methods to assess environmental impacts of forest biomass power plants in Portugal

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Abstract

As a renewable energy source, the use of forest biomass for electricity generation is advantageous in comparison with fossil fuels; however, the activity of forest biomass power plants causes adverse impacts, affecting particularly neighbouring communities. The main objective of this study is to estimate the effects of the activity of forest biomass power plants on the welfare of two groups of stakeholders, namely local residents and the general population. To this end, we apply two stated preference methods: contingent valuation and discrete choice experiments, respectively. The former method was applied to estimate the minimum compensation residents of neighbouring communities of two forest biomass power plants in Portugal would be willing to accept. The latter method was applied among the general population to estimate their willingness to pay to avoid specific environmental impacts. The results show that the presence of the selected facilities affects individuals’ well-being. On the other hand, in the discrete choice experiments conducted among the general population all impacts considered were valued, in particular odour and fauna and flora impacts. The results of this study stress the importance of performing an equity analysis of the welfare effects on different groups of stakeholders from the installation of forest biomass power plants, as their effects on welfare are location and impact specific. Policy makers should take into account the views of all stakeholders either directly or indirectly involved when deciding crucial issues regarding the sitting of new forest biomass power plants, in order to achieve an efficient and equitable outcome.

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Fig. 1

Source: Authors’ elaboration

Fig. 2

Source: EDP

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Source: Authors’ elaboration

Fig. 4

Source: EDP

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Notes

  1. As the direction of the preferences is not clear (the parameters may have positive or negative values), the impact attributes are specified as normally distributed. As a conventional procedure, the price attribute will be specified as a fixed or non-random parameter.

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Acknowledgments

The authors gratefully acknowledge the financial support from FCT Fundação para a Ciência e Tecnologia with Grant Number PTDC/EGE-ECO/122402/2010.

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Correspondence to Lígia Pinto.

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Botelho, A., Lourenço-Gomes, L., Pinto, L. et al. Using stated preference methods to assess environmental impacts of forest biomass power plants in Portugal. Environ Dev Sustain 18, 1323–1337 (2016). https://doi.org/10.1007/s10668-016-9795-6

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  • DOI: https://doi.org/10.1007/s10668-016-9795-6

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