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18 March 2022 Who is More Willing to Pay for Green Electricity? a Case Study of Anyang City, China
Hou Peng, Liu Xiaojie, Cheng Shengkui
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Abstract

Green electricity (GE) is of great importance for effectively combating climate change and global Sustainable Development Goals (SDGs). The willingness-to-pay (WTP) for GE by end users has great influence on its widespread application, especially at the household level. Researchers have analyzed the mechanisms of residents' WTP and predicted how much they could afford for GE. However, most of these studies have focused on developed (affluent) countries and regions, and residents' WTP as well as the corresponding monetary amount of their WTP were not considered together in previous studies. In this study, we try to fill the gap of the inadequate research of residents' WTP in underdeveloped areas through an analysis of the WTP of urban residents in a small Chinese city (Anyang). A total of 274 household-scale samples were collected by face-to-face interviews in December 2019. We found that approximately 60% of respondents gave a positive response to WTP, with an average value of 8.39 yuan per month. Educational attainment, per capita disposable income in the household, the length of residents' time living in urban areas and the rate of neighbors' approval of WTP are all positively correlated with the tendency of the residents' positive response toward WTP. The three factors of per capita disposable income, the rate of neighbors' approval of WTP and the degree of residents' environmental concerns are positively correlated with the amount of residents' WTP. More importantly, we demonstrated the existence of a weak “Herd Effect” in residents' views of WTP. Finally, some suggestions for policymakers are given, such as raising household income through retraining and raising residents' environmental awareness through education and community advertisements. This study also highlights that the widespread application of GE at the household level will be of great assistance to the GE industry overall. Therefore, the rising economic cost of GE should not be shared by the households in the long term.

Hou Peng, Liu Xiaojie, and Cheng Shengkui "Who is More Willing to Pay for Green Electricity? a Case Study of Anyang City, China," Journal of Resources and Ecology 13(2), 231-237, (18 March 2022). https://doi.org/10.5814/j.issn.1674-764x.2022.02.006
Received: 15 March 2021; Accepted: 16 May 2021; Published: 18 March 2022
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KEYWORDS
Anyang City
green electricity
urban residents
willingness-to-pay
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