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

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  • Dagher, Leila
  • harajli, hassan

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.

Suggested Citation

  • Dagher, Leila & harajli, hassan, 2014. "Willingness to pay for green power in an unreliable electricity sector: Part 1. The case of the Lebanese residential sector," MPRA Paper 116121, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116121
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    More about this item

    Keywords

    green power; willingness-to-pay; renewable energy; Lebanon;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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