Willingness to pay for green power in an unreliable electricity sector: Part 1. The case of the Lebanese residential sector

Leila Dagher () and Hassan Harajli

MPRA Paper from University Library of Munich, Germany

Abstract: A willingness to pay (WTP) analysis for renewable-based electricity is undertaken for the Lebanese residential sector. A survey of 600 samples was conducted based on a stratified random sampling method, in which energy use and expenditures, socioeconomic, and demographic characteristics were collected. Four scenarios for WTP for green power were designed to best reflect the possibilities of integrating renewable energy sources in Lebanon’s ‘unreliable’ electricity sector; (1) local system covering partial electricity needs, (2) local system covering entire electricity needs, (3) utility-provided green power covering partial electricity needs, and (4) utility-provided green power covering entire electricity needs. The results based on a Tobit model highlight the importance of renewable energy options that displace completely the diesel generator sets, i.e. options 2 and 4. Other parameters such as ownership of the home, age, perception of trust in government institutions, and awareness of renewable systems were also found significant in influencing WTP for RE.

Keywords: green power; willingness-to-pay; renewable energy; Lebanon (search for similar items in EconPapers)
JEL-codes: Q2 Q4 (search for similar items in EconPapers)
Date: 2014
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Related works:
Journal Article: Willingness to pay for green power in an unreliable electricity sector: Part 1. The case of the Lebanese residential sector (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116121

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