Economic Benefits of Renewable Energy Sources: Willingness to Pay for Geothermal Energy in Yozgat Province, Turkey

Turkey, as a rapidly developing and industrializing country, is in need of inexpensive, reliable, domestic, as well as sustainable and environmentally friendly energy sources. High potential of geothermal energy in Turkey motivates decision makers and local authorities to make investments on geothermal energy. Contingent Valuation Method (CVM) is the most widely used non-market valuation technique to value benefits of water resources projects such as thermal water resources. The idea of CVM is simple: "if you want to know the value place on something: Just ask them". CVM ask people how much are they willing to pay to keep a benefit. In this study, CVM is applied to Yozgat Province in Turkey to estimate to people's willingness to pay for geothermal energy instead of foil fuels for the heating purposes. Yozgat Province which has a population of 485,000 is located in the central Turkey and shared by Kızılırmak and Yeşilırmak Watersheds. The geothermal potential of Yozgat Province is estimated to be used for the population of 100,000 people. The results of CVM help decision makers to understand the underlying motivation to use geothermal energy. Moreover, valuation of tangible benefits like health benefits because of reduced air pollution can be used in to Benefit Cost analyses to be used in the decision making process.