Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania
Renewable energy is seen as a key tool in addressing the dual issue of increasing energy demand and climate change mitigation. In the current geopolitical climate, it may also play a key long-term role in increasing energy security. In order to reach the ambitious green energy targets set for each E...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-06-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.921152/full |
| _version_ | 1811245665743798272 |
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| author | Alexandru Maxim Dumitru-Tudor Jijie Teodora Roman |
| author_facet | Alexandru Maxim Dumitru-Tudor Jijie Teodora Roman |
| author_sort | Alexandru Maxim |
| collection | DOAJ |
| description | Renewable energy is seen as a key tool in addressing the dual issue of increasing energy demand and climate change mitigation. In the current geopolitical climate, it may also play a key long-term role in increasing energy security. In order to reach the ambitious green energy targets set for each European Union member state public support for fiscal and other support mechanisms is required. The purpose of this paper is to determine to what extent the population in the North-East region of Romania is willing to make financial sacrifices for further development of renewable energy. We also explore what lifestyle and socio-demographic factors influence willingness to pay. We applied a discrete choice experiment on a sample of 602 households from the populous North-East region of Romania. Our results show that the creation of new jobs and the increase of the national energy independence, followed by the reduction of pollution are societal benefits that would convince households to pay a premium in order to support renewable energy development. Increased local budgets for rural communities resulting from the taxation of new energy companies is not one of the desired outcomes of green energy development. The study is useful in the design of adequate fiscal and renewable support policies and serves companies by identifying willingness to pay influence factors, as well as by demonstrating a market segmentation procedure. |
| first_indexed | 2024-04-12T14:42:47Z |
| format | Article |
| id | doaj.art-ab11bd86a4ad4ff2b309c03699f103a9 |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-12T14:42:47Z |
| publishDate | 2022-06-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-ab11bd86a4ad4ff2b309c03699f103a92022-12-22T03:28:46ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-06-011010.3389/fenvs.2022.921152921152Why Are Households Willing to Pay for Renewable Energy? Lessons From RomaniaAlexandru MaximDumitru-Tudor JijieTeodora RomanRenewable energy is seen as a key tool in addressing the dual issue of increasing energy demand and climate change mitigation. In the current geopolitical climate, it may also play a key long-term role in increasing energy security. In order to reach the ambitious green energy targets set for each European Union member state public support for fiscal and other support mechanisms is required. The purpose of this paper is to determine to what extent the population in the North-East region of Romania is willing to make financial sacrifices for further development of renewable energy. We also explore what lifestyle and socio-demographic factors influence willingness to pay. We applied a discrete choice experiment on a sample of 602 households from the populous North-East region of Romania. Our results show that the creation of new jobs and the increase of the national energy independence, followed by the reduction of pollution are societal benefits that would convince households to pay a premium in order to support renewable energy development. Increased local budgets for rural communities resulting from the taxation of new energy companies is not one of the desired outcomes of green energy development. The study is useful in the design of adequate fiscal and renewable support policies and serves companies by identifying willingness to pay influence factors, as well as by demonstrating a market segmentation procedure.https://www.frontiersin.org/articles/10.3389/fenvs.2022.921152/fullrenewable energywillingness to paydiscrete choice experimentlifestyle segmentationenergy independence |
| spellingShingle | Alexandru Maxim Dumitru-Tudor Jijie Teodora Roman Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania Frontiers in Environmental Science renewable energy willingness to pay discrete choice experiment lifestyle segmentation energy independence |
| title | Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania |
| title_full | Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania |
| title_fullStr | Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania |
| title_full_unstemmed | Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania |
| title_short | Why Are Households Willing to Pay for Renewable Energy? Lessons From Romania |
| title_sort | why are households willing to pay for renewable energy lessons from romania |
| topic | renewable energy willingness to pay discrete choice experiment lifestyle segmentation energy independence |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.921152/full |
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