Paying for Renewable Energy: Devising Policy Implications from A Concept Centric Review of Literature
Renewable energy based energy transition is gaining momentum the world over. End consumer’s willingness to pay for it is an important variable in the transition plan, which can help meet set green energy targets. This study provides a concept-centric literature review of 70 research studies investigating consumer’s willingness to pay for renewable energy. Analysis suggests that it’s a reflection of one of 3 concepts: First, it indicates public acceptance of renewable energy, with higher public acceptance translating to higher stated willingness to pay for green energy. Second, it mirrors the preferred attributes of green energy supply, specifically in deregulated retail electricity markets. Third and finally, it emulates the non – use values of renewable energy, namely bequest and option values. Basis the analysis, this study recommends policy interventions that will help accelerate the pace of green energy adoption in developing countries, where green energy transition is still in its nascent stages.