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

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 (RE) 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 RE 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 RE were also found significant in influencing WTP.