Willingness to pay for environment-oriented energies in Khorasan-Razavi province: application of spatial Tobit model

Using the estimation methods of the affecting factors of willingness to pay (WTP) for renewable energy is necessary for economic planning, and taking the suitable policies for investment in renewable energy. Using survey data from 245 urban and rural households in three counties of the Khorasan-Razavi province (Mashhad, Neishabour, Sabzevar), the article investigates the socioeconomic determinants of WTP for renewable energy in the year 1393. For this purpose, an open-ended contingent valuation method (CVM) is used via a spatial Tobit model. The results show that WTP is significantly influenced by spatial factors. The average of monthly WTP of Households live in Mashhad County is 485450RLS that is high in comparison with 43778RLS and 40261RLS or the households that are respectively live in Neishabour and Sabzevar. Thus, spatial structure is a non-negligible component in valuation studies. Accordingly, it is recommended that the spatial structure should be considered by researchers in valuation studies.