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Analysis of Factors Influencing Households Preference Level for Solar Energy in Urban Areas of Southwest Nigeria

Author

Listed:
  • Olaniran Anthony Thompson

    (Department of Agricultural and Resource Economics, Federal University of Technology, Akure, Nigeria,)

  • Babatunde Oluseyi Ajiboye

    (Landmark University, Omu-Aran, Kwara State, Nigeria,)

  • Akin Daniel Oluwamide

    (Department of Agricultural and Resource Economics, Federal University of Technology, Akure, Nigeria,)

  • Olumide Ojo Oyenike

    (Department of Forest Economics and Extension Service, Research Fellow, Forestry Research Institute of Nigeria.)

Abstract

If Sustainable Development Goals (SDGs) seven of affordable and clean energy will be achieved, access to clean energy such as solar energy needs dedicated attention. The study assessed respondents perception of solar energy and identified factors influencing their preference level in urban areas of Southwest Nigeria. Data were obtained from four hundred and eighty (480) solar energy users and four hundred and eighty (480) non- solar energy users leading to total of nine hundred and sixty (960) respondents through a multi-stage sampling technique. Descriptive statistics, 5-likert scale type and tobit regression model were used to analyze the data collected. The respondents agreed that solar energy is the most appropriate source of energy compared to fossil fuel with mean score of 3.83. Price stability (0.83) attribute of solar energy is one of the reasons that makes it preferred by the respondent. A unit increase in household income will lead to 0.0879592 preference for solar energy in the study area. The study recommends that government at all levels should sensitize the households on the usage of solar energy in Nigeria to achieve the goal seven of SDGs.

Suggested Citation

  • Olaniran Anthony Thompson & Babatunde Oluseyi Ajiboye & Akin Daniel Oluwamide & Olumide Ojo Oyenike, 2021. "Analysis of Factors Influencing Households Preference Level for Solar Energy in Urban Areas of Southwest Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 468-476.
    • Handle: RePEc:eco:journ2:2021-03-57
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    References listed on IDEAS

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    More about this item

    Keywords

    Clean Energy; Solar Energy; Perception; Tobit Regression Model; Nigeria;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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