Willingness to Pay for Renewable Energy: Evidence from Malaysian’s Households

A.A. Azlina (), Mahirah Kamaludin () and Moe Shwe Sin ()
Additional contact information
A.A. Azlina: School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus Terengganu MALAYSIA
Mahirah Kamaludin: School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus, Terengganu MALAYSIA
Moe Shwe Sin: School of Social and Economic Development Universiti Malaysia Terengganu 21030 Kuala Nerus, Terengganu MALAYSIA

Jurnal Ekonomi Malaysia, 2018, vol. 52, issue 3, 143-151

Abstract: The growing consumption of fossil energy fuels that is linked with climate change and quality of life has pushed renewable energy development into the centre of debate on energy security. Renewable energy has become a top priority for the governments in most countries due to its distinctive features of a cleaner energy source. Despite Malaysia’s effort to encourage the various forms of renewable energy (RE), the total amount of RE is still very low. Moreover, difficulties arise as the energy supply is highly related to the general wellbeing of the individuals and societies. As such, exploring the consumer’s willingness for RE has become vital as this new knowledge can be used by the government to promote long run RE consumption. This study attempts to investigate consumers’WTP for RE sources and discover other factors of WTP with special attention to Malaysia setting. By employing a contingent valuation method (CVM), the findings reveal that the willingness to pay (WTP) for RE is significantly related to the proposed bid price and household income. The results also indicate that consumer on average is willing to pay about RM3.22 (USD0.82) per month for the Renewable Energy Fund. This micro-level investigation can be a useful framework in organising information on how consumers are willing to contribute towards the development of RE in Malaysia.

Keywords: Malaysia; contingent valuation; renewable energy; renewable energy fund; willingness to pay (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.ukm.my/jem/wp-content/uploads/2021/06/jeko_523-11.pdf (application/pdf)

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:ukm:jlekon:v:52:y:2018:i:3:p:143-151

DOI: 10.17576/JEM-2018-5203-11

Access Statistics for this article

More articles in Jurnal Ekonomi Malaysia from Faculty of Economics and Business, Universiti Kebangsaan Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Asri Abd Ghani ().