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Trade-off in energy policy: Evidence from a best-worst discrete choice experiment

Author

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  • Shahzad, Qaisar
  • Aruga, Kentaka

Abstract

This study addresses the critical issue of climate change awareness in Pakistan by evaluating the Pakistani citizens’ willingness to adopt energy reforms to reduce CO2 emissions. Using best-worst scaling, we examined five key attributes important for reforming the Pakistan energy policy: CO2 emission reduction, energy independence, employment impact, transition time, and changes in energy price. The findings reveal a strong preference for reducing CO2 emissions, enhancing energy independence, increasing employment, and accelerating policy implementation. Meanwhile, Pakistan residents revealed concerns about potential increases in energy bills. The analysis showed that male, urban, educated, full-time employed, middle-aged (35-44), married individuals with children, high-income, and environmentally conscious respondents were more willing to trade-off for CO2 reduction. In contrast, apprehension about potential job losses and higher energy bills was prevalent across all subgroups. The study recommends diversifying energy sources, including nuclear and hydro-energy, as a strategic approach to balance environmental goals with economic stability in Pakistan. These insights into public energy policy preferences can inform policymakers and researchers in similar developing countries of sustainable energy strategies.

Suggested Citation

  • Shahzad, Qaisar & Aruga, Kentaka, 2025. "Trade-off in energy policy: Evidence from a best-worst discrete choice experiment," MPRA Paper 124119, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:124119
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    File URL: https://mpra.ub.uni-muenchen.de/124119/1/MPRA_paper_124119.pdf
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    More about this item

    Keywords

    CO2 emission; Unemployment; Trade-off; Energy reform;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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