Understanding the social value of green gas

Most people in the Netherlands are willing to pay more for the supply of green gas than for natural gas. In particular, this concerns delivery via green gas certificates and not alternative delivery methods, such as a direct connection to the biodigester where the green gas is produced.

For the municipalities of Oldambt and Eems Delta, we investigated the social (added) value of green gas delivery. Special attention was paid to ‘direct’ delivery of green gas, where there is a physical gas pipeline directly connecting the biodigesters to residential areas in the study area.

Method
We calculated the national cost of green gas using the Vesta-MAIS heat transition model. We also used a conjoint analysis to determine Dutch consumers’ willingness to pay for green gas, and the different ways it can be supplied. Finally, we provide a description of the frameworks on the basis of which network operators weigh up investments enabling the feed-in of green gas into the network.

Results
Our research showed that neighbourhoods in the Oldambt and Eems Delta municipalities are in the top 20% of the Netherlands when it comes to the added value of green gas compared to other sustainable heat options. Making green gas available as a sustainability option is therefore of great economic importance for the respective municipalities.
It further revealed that the majority of people surveyed are willing to pay more for the supply of green gas than for natural gas. On average, Dutch consumers are willing to pay around 12 euros more per month for using green gas (via the purchase of certificates) than for natural gas, assuming a current gas bill of 100 euros per month.
We also investigated whether people are willing to pay more monthly when green gas is delivered physically instead of delivered through the national grid by purchasing certificates. However, the majority of the sample indicated that they are most willing to pay for the current mode of delivery, where green gas is delivered through the national grid and purchased with certificates.

De bevindingen bieden een waardevol perspectief op de waardering van Nederlandse consumenten voor groen gas en de verschillende manieren waarop dit aan huishoudens kan worden geleverd.

For more information, read the research report in Dutch (pdf).