Implementing Carbon Capture and Storage in the United Kingdom: Estimating Willingness to Pay through a Contingent Valuation Survey

Abstract

Carbon capture and storage (CCS) is a technology implemented to reduce emissions in the power and industrial sectors by capturing carbon dioxide (CO₂) before it is released into the atmosphere. Emerging technologies like CCS are often unfamiliar to the public and can be misinterpreted when publics are not involved in the decision-making process, leading to opposition and barriers to deployment. Engaging the public on policy decisions can prevent such obstacles from hampering implementation. This study aims to elicit preferences and estimate the distribution of willingness to pay (WTP) for carbon capture and storage in the United Kingdom (UK). We employ the contingent valuation method with double bounded dichotomous choice format, administering an online survey to 1033 individuals from the UK. Interval regression analysis is applied to estimate mean WTP. Our findings indicate that public attitudes towards CCS in the UK tend to be relatively positive. Mean WTP for the implementation of CCS is £95.50. We find that environmental attitudes more than socio-demographic characteristics are significant factors in WTP decisions for CCS. Public acceptance is critical to ensure appropriate steps are taken to move CCS projects and policy forward and prevent further delay in tackling emissions in the energy sector.