Green premium pricing

Because of the appreciable number of zero answers, both on continuous WTP follow up and on open-ended WTB, a censored Tobit model has been estimated in both cases (Greene, 2000). The first one explains the declared percentage premium price as a linear... 

In a free market, the absence of these subsidies might make the green pricing premium prohibitive for consumers. In California, for example, a 1.5-cent per kilowatt hour (kWh) subsidy for green-pricing customers has led to over 100,000 customers for green power. There are serious questions about what will happen when the subsidy is reduced nr expires. This subsidy is over and above other favors that have led to the construction of high-cost renewable capacity in the last decade—subsidies that may nr may not continue in the future. 

Kremen, A., Greene, C., and Hanson, J., 2004, Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers Markets, Outlook Report No. (VGS-301-01), USDA, Economic Research Service, 12 pp, April. 

Oberholtzer, L., Dimitri, C., and Greene, C., 2005, Organic Price Premiums Hold on as Organic Produce Market Expands, Outlook Report No. VGS-30801, Economic Research Service, U.S. Department of Agriculture, May. 

Green Pricing and Marketing - To price and sell greenpower/electricity higher than that produced from fossil or nuclear power plants, supposedly because some buyers are willing to pay a premium for greenpower. 

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