Residential Consumer’s Willingness to Pay for Renewable Energy: Evidence from a Double-Bounded Dichotomous Choice Survey from India

Despite the falling costs of Renewable Energy (RE), RE adoption in Indian residential households is still attepid growth rates. With the onset of retail electricity market deregulation in India, the introduction of “greentariffs” for residential households can be effective in resolving the issue of low RE adoption. This studyinvestigates the willingness to pay for green tariffs/renewable energy-based electricity contracts using thecontingent valuation method. Data collected from ۴۷۶ Indian residential households are analyzed by theDouble-Bounded Dichotomous Choice technique. The results of the conducted maximum LikelihoodEstimation (MLE) method reveal the mean willingness to pay ۳۰۸.۵۲ Rs per household/month for consumption of green power in a premium-paying setting. Results indicate that although households hold positive perception of renewable energy, the willingness to pay is not commensurately high, indicating an attitude-action gap. The study recommends green energy defaults in residential energy contracts, direct marketing of non-use value of RE use (altruistic and bequest) by power supplying utilities, and promoting RE use through RE opinion champions/influencers as measures to enhance RE adoption amongst Indian residential energy consumers.

کلیدواژه ها:

Green energy contracts ، Contingent Valuation ، Renewable Energy ، Willingness to pay