Posters

Abstract

This paper presents the results of an investigation on the willingness-to-pay for renewable energy sources in selected European countries. The primary purpose of this paper is to provide an econometric analysis of the key determinants of public (stated) willingness-to-pay for electricity considered "clean" i.e., originating from renewable sources. First, the investigation provides an overview of stated willingness-to-pay for renewable ("clean energy") sources across selected countries and the variations within countries. Second, we identify main determinants of the stated willingness-to-pay for clean energy using an econometric model. We show how public willingness-to-pay for clean energy is affected by relevant factors using primary data from a comprehensive opinion survey containing more than 18 000 interviews from 9 European countries from 2022. The willingness-to-pay for clean energy was elicited through a public survey using a 5-point scale. Therefore, the dependent variable in our model is not a continuous (monetary) value, but instead a stated (ordered) qualitative level on that scale. The key determinants of willingness-to-pay are assessed using an econometric ordered choice model specification given the ordinal nature of the dependent variable. Our model includes relevant factors representing environmental and climate awareness, information on renewable energy, budget considerations, preferences for power supply, perceptions/attitudes about renewable power, public acceptance levels, and demographic characteristics as explanatory variables. The analysis shows heterogeneity across European countries and within each country covered by this study. The results from the econometric model confirm statistically significant (positive and negative) relations between the willingness-to-pay for clean energy (supporting the Green Deal) and the proposed explanatory variables.