Willingness to pay for green electricity derived from renewable energy sources in Nigeria

T.R. Ayodele, A.S.O. Ogunjuyigbe, O.D. Ajayi, A.A. Yusuff and T.C. Mosetlhe

Renewable and Sustainable Energy Reviews, 2021, vol. 148, issue C

Abstract: The electricity derived from sources of renewable energy has the potential to increase the safety of the power supply and contribute positively to environmental sustainability. Despite these laudable attributes, the level of grid integration of renewable electricity in Nigeria is low. This study, therefore, sought to understand the factors influencing the Willingness to Pay (WTP) for renewable electricity in Nigeria with a view to determining the cost the citizens are willing to pay for renewable electricity. This was achieved by conducting a survey of 400 participants who were randomly selected from five local governments in Ibadan (a cosmopolitan city located in South West Nigeria). Some of the critical results revealed that respondents are willing to pay an average cost of 5–10% above the present cost of electricity. It was also observed that the significant factors that affect respondents' WTP include age, income, marital status, and education level. A positive disposition towards renewable energy and a substantial level of awareness as regards renewable energy affect respondents’ willingness to pay for renewable energy. Policy statements were extracted based on the results of the study leading to useful recommendations on renewable energy promotion in Nigeria. The study could also give an idea of the optimal design of renewable energy mini/micro-grid architecture based on the range of the cost people are willing to pay in Nigeria.

Keywords: Willingness to pay; Contingent valuation method; Renewable energy; Environmental sustainability; Nigeria (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032121005669
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:148:y:2021:i:c:s1364032121005669

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2021.111279

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().