The influence of consumers’ intention factors on willingness to pay for renewable energy: a structural equation modeling approach

Muhammad Irfan, Zhen Yu Zhao, Heng Li, Abdul Rehman

Research output: Journal article publicationJournal articleAcademic researchpeer-review

126 Citations (Scopus)

Abstract

As the adoption of renewable power generation technologies (RPTs) is a complex and multidimensional process influenced by a variety of factors, it provokes traction among researchers to identify these influencing factors. This study aims to investigate the impact of consumers’ intention factors on willingness to pay (WTP) for renewable energy (RE) in Pakistan. The current research has contributed through expanding the theoretical framework of the theory of planned behavior by adding two new constructs, i.e., belief about RE cost and environmental concern to better understand consumers’ intentions towards adoption or prohibition of RPTs. Findings are based on the primary data gathered from 349 residents in the five major cities of Pakistan including, Karachi, Lahore, Faisalabad, Rawalpindi, and Multan by conducting a comprehensive survey. Structural equation modeling was employed for data analysis purposes. Research results indicate that the influencing factors such as attitude, subjective norms, and perceived behavioral control positively moderate the relationship between consumer’s intention and WTP for RE, belief about RE cost has a negative effect, while environmental concern did not find to have a significant effect. Based on research findings, this study offered essential policy recommendations to fulfill the country’s energy needs on its way to a future of sustainable development.

Original languageEnglish
Pages (from-to)21747-21761
Number of pages15
JournalEnvironmental Science and Pollution Research
Volume27
Issue number17
DOIs
Publication statusPublished - 1 Jun 2020

Keywords

  • Consumers’ intention
  • Pakistan
  • Renewable power generation technologies
  • Structural equation modeling
  • Willingness to pay for renewable energy

ASJC Scopus subject areas

  • Environmental Chemistry
  • Pollution
  • Health, Toxicology and Mutagenesis

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