ABSTRACT
The goal of the green marketing programme is to facilitate the installation of new renewable energy projects in New South Wales by increasing consumer confidence in green power schemes developed by electricity retailers. The concept of willingness-to-pay for valuing environmental goods is one of the core issues in environmental economics. The chapter presents a number of recent examples of consumers' willingness to pay for green electricity. It begins with a broad description of some examples from the United States, and presents a short summary of selected green pricing programmes. The key aspect of green marketing in the electricity sector is providing market-based choices for electricity consumers to purchase their electricity from environmentally preferred sources. Massachusetts Electric Company's retail electricity pilot programme was unique in that it offered a 'green' option in the programme design. Marketing and education are essential to the success of green pricing.
