What would motivate people to pay more for electricity generated by renewable energy sources?
Public acceptance and support are crucial to increasing the adoption of renewable energy technologies and establishing new renewable energy policies. In Vietnam, where plans to rapidly scale-up electricity generation are among the fastest globally, one question of interest is what would motivate people to pay more for electricity generated by renewable energy sources? As part of its national Power Development Plan, Vietnam targets a future electricity mix consisting of at least 21% renewable energy by 2030. This study assesses the public's willingness to pay (WTP) for increasing renewable energy share and corresponding motivating factors in Ho Chi Minh City, Vietnam. Drawing from a valid sample of 294 households, this study uses a double-bounded dichotomous choice contingent valuation method (CVM) to evaluate the public perception of renewable energy. On average, respondents are willing to pay about $4.39 USD more on their monthly electric bill to support renewable energy, which represents a 9.48% increase. Notably, respondents most concerned with air quality and the utility's profitability indicated their support to pay more for renewable energy. This study suggests the importance of communicating health-related air pollution mitigation benefits for emerging economies and building support among customers so that electric utilities can increase renewable energy targets. From a policy perspective, improved and transparent disclosure of air pollution data and utility financial statements could expedite the transition to renewable energy in emerging economies, such as Vietnam.
