Journal of Resources and Ecology >
Who Is More Willing to Pay for Green Electricity? A Case Study of Anyang City, China
Received date: 2021-03-15
Accepted date: 2021-05-16
Online published: 2022-03-09
Supported by
The National Natural Science Foundation of China(71874178)
Green electricity (GE) is of great importance for effectively combating climate change and global Sustainable Development Goals (SDGs). The willingness-to-pay (WTP) for GE by end users has great influence on its widespread application, especially at the household level. Researchers have analyzed the mechanisms of residents’ WTP and predicted how much they could afford for GE. However, most of these studies have focused on developed (affluent) countries and regions, and residents’ WTP as well as the corresponding monetary amount of their WTP were not considered together in previous studies. In this study, we try to fill the gap of the inadequate research of residents’ WTP in underdeveloped areas through an analysis of the WTP of urban residents in a small Chinese city (Anyang). A total of 274 household-scale samples were collected by face-to-face interviews in December 2019. We found that approximately 60% of respondents gave a positive response to WTP, with an average value of 8.39 yuan per month. Educational attainment, per capita disposable income in the household, the length of residents’ time living in urban areas and the rate of neighbors’ approval of WTP are all positively correlated with the tendency of the residents’ positive response toward WTP. The three factors of per capita disposable income, the rate of neighbors’ approval of WTP and the degree of residents’ environmental concerns are positively correlated with the amount of residents’ WTP. More importantly, we demonstrated the existence of a weak “Herd Effect” in residents’ views of WTP. Finally, some suggestions for policymakers are given, such as raising household income through retraining and raising residents’ environmental awareness through education and community advertisements. This study also highlights that the widespread application of GE at the household level will be of great assistance to the GE industry overall. Therefore, the rising economic cost of GE should not be shared by the households in the long term.
Key words: willingness-to-pay; green electricity; urban residents; Anyang City
HOU Peng , LIU Xiaojie , CHENG Shengkui . Who Is More Willing to Pay for Green Electricity? A Case Study of Anyang City, China[J]. Journal of Resources and Ecology, 2022 , 13(2) : 231 -237 . DOI: 10.5814/j.issn.1674-764x.2022.02.006
Fig. 1 The spatial distribution of household samples in Anyang City |
Table 1 Descriptive statistics of the measured variables (n=274) |
Item | Definition | Mean | S.D. |
---|---|---|---|
Gender | male=1, female=0 | 0.35 | 0.48 |
Age (yr) | Age of the respondents | 52.35 | 13.09 |
Family size (persons) | Total number of household members | 4.13 | 1.54 |
Education (yr) | Educational attainment level | 10.58 | 3.48 |
Perincome (yuan) | The monthly labor income per capita in the household | 1798.42 | 1019.19 |
Length (yr) | The length of time the respondents had lived in cities | 28.37 | 21.56 |
Rate | The ratio of those “Willing” (WTP=1) to the total number of sample households in the same community. (a closed interval from 0 to 1) | 0.60 | 0.22 |
Pollution | Respondent strongly disagrees with the opinion that the development of renewable energy can help to manage environmental pollution=1, partially disagree with the opinion =2, neutral on the opinion =3, partially agree with the opinion =4, absolutely agree with the opinion =5 | 4.47 | 0.65 |
Note: Labor income was defined as the sum of (retired) wage and the transfer income from government or other family members, while property income was excluded considering the feedback information obtained in the pre-investigation (i.e., most respondents refused to tell us their property income). |
Table 2 The differences of respondents’ WTP among districts |
Name of district | Sample size | WTP=1 (YES) (%) | Magnitude of WTP (yuan) |
---|---|---|---|
Wenfeng District | 24 | 66.67 | 6.00 |
Beiguan District | 24 | 44.44 | 6.67 |
Longan District | 16 | 50.00 | 3.34 |
Yindu District | 31 | 80.65 | 6.66 |
Anyang County | 17 | 41.18 | 9.98 |
Linzhou City | 62 | 55.56 | 6.18 |
Tangyin County | 29 | 48.39 | 11.08 |
Neihuang County | 24 | 69.23 | 8.01 |
Hua County | 47 | 75.00 | 11.93 |
Average | -- | 60.98 | 8.05 |
Fig. 2 The distribution of respondents’ answers on Question 14: “How would you feel if the utilization of GE led to a bigger household electricity bill”. |
Table 3 Estimation results of the Probit model and the OLS model |
Variable | Model 1 | Model 2 | Model 3 | |||
---|---|---|---|---|---|---|
Probit | OLS | Probit | OLS | Probit | OLS | |
Gender | -0.298(0.182) | 0.131(1.803) | -0.33*(0.195) | 0.287(1.804) | -0.343*(0.197) | -0.025(1.804) |
Age | -0.009(0.007) | 0.063(0.073) | -0.01(0.009) | 0.075(0.08) | -0.01(0.009) | 0.073(0.079) |
Education | 0.429***(0.098) | 2.005**(0.92) | 0.329***(0.105) | 1.677*(0.953) | 0.323***(0.106) | 1.498(0.954) |
Family size | 0.017(0.057) | 0.971*(0.568) | 0.024(0.062) | 0.917(0.58) | 0.023(0.062) | 0.89(0.578) |
Perincome | 0.0004***(0.000) | 0.002**(0.001) | 0.0004***(0.000) | 0.002**(0.001) | 0.0003***(0.000) | 0.002*(0.001) |
Length | - | - | 0.008*(0.005) | -0.002(0.046) | 0.009*(0.005) | 0.005(0.046) |
Rate | - | - | 2.944***(0.493) | 6.414*(3.865) | 2.938***(0.493) | 6.516*(3.848) |
Pollution | - | - | - | - | 0.088***(0.139) | 2.384**(1.298) |
Constant | -1.207*(0.661) | -9.6(6.539) | -2.706***(0.774) | -12.511*(6.763) | -3.06***(0.958) | -22.074**(8.51) |
R2 | - | 0.049 | - | 0.059 | - | 0.071 |
Notes: The values in brackets are the T-statistic values of the estimated coefficients of the corresponding variables. Model 1 comprises household demographic variables alone, while several more external variables are introduced into Model 2 and Model 3. ***, **, * mean P<0.01, P<0.05, P<0.1 respectively. |
We wish to thank the community workers for their help in contacting the sample households, and we also appreciate the eight postgraduates from Henan Agricultural University for joining our investigation. They are: Feng Manjing, Qu Yalong, Sheng Ge, Yang Xi, Zheng Menghua, Wang Yanyan, Shi Yaqi and Wang Yanqiang.
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