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Towards carbon free economy and electricity: The puzzle of energy costs, sustainability and security based on willingness to pay

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  • Balezentis, Tomas
  • Streimikiene, Dalia
  • Mikalauskas, Ignas
  • Shen, Zhiyang

Abstract

The objective of this paper is to analyse the main drivers of households’ acceptance of renewable energy sources and to assess their willingness to pay for extension of renewable energy sources in the electricity balance of a European Union Member State – Lithuania. The data were collected through a questionnaire survey. The contingent valuation method was applied. The study revealed that most of the respondents have some knowledge about specific renewable energy systems and their benefits. The rate of usage of micro-generation renewable energy technologies was found to be quite low (only 12% of households reported owning micro-generation renewable technologies). Mitigation of environmental impact is seen as an important motive for accepting renewable energy technologies. Willingness to pay for an increase in the share of renewables in electricity mix was estimated to sit in between 0.0153 and 0.0296 Eur/kWh or 12–23% extra (depending on the share of renewables in electricity mix).

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  • Balezentis, Tomas & Streimikiene, Dalia & Mikalauskas, Ignas & Shen, Zhiyang, 2021. "Towards carbon free economy and electricity: The puzzle of energy costs, sustainability and security based on willingness to pay," Energy, Elsevier, vol. 214(C).
  • Handle: RePEc:eee:energy:v:214:y:2021:i:c:s0360544220321885
    DOI: 10.1016/j.energy.2020.119081
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