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Jurnal Ekonomi Malaysia

56 (1) 2022 59 – 70

Willingness to Pay for Renewable Energy: Evidence From High Wind and Wave Energy Potential Areas
Kesediaan untuk Membayar Tenaga Boleh Diperbaharui: Bukti dari Kawasan Berpotensi Tenaga Angin Kencang dan Ombak

Faculty of Business, Economics, and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu
MALAYSIA.

aqlina@umt.edu.my

Faculty of Business, Economics, and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu
MALAYSIA.

shahidaabubakar96@gmail.com

Faculty of Business, Economics, and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu
MALAYSIA.

mahirah.k@umt.edu.my

Malaysia Environmental Economics Association (MEEA),
Institute of Tropical Forestry and Forest Products
Universiti Putra Malaysia
43400 Serdang Selangor
MALAYSIA.

awangnoor@gmail.com

Abstract

 The study aims to investigate consumers’ willingness to pay for the development of renewable energy to encourage renewable energy consumption in the long run. This study further identifies the factors that influence consumers’ willingness to pay for renewable energy. A face-to-face questionnaire, with a contingent valuation method was administered to 672 residential electricity users in the East Coast of Peninsular Malaysia, areas that have high wind and wave energy potentials with large hydropower. The findings show that the average consumers’ willingness to pay is about RM 4.90 or about USD 1.18 per month on electricity bills as a contribution to a Renewable Energy Fund. The results further show that the consumers’ willingness to pay for renewable energy is significantly influenced by the proposed bid price, income, confidence level and education. The findings may help the government in creating a useful framework to ensure sustainable development in the future.

Keywords

contingent valuation method; Malaysia; renewable energy; wave energy; willingness to pay; wind energy

JEL Codes

Q00, Q40, Q41, Q49, Q50, Q51
http://dx.doi.org/10.17576/JEM-2022-5601-05
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Azlina, A. A., Abu Bakar, S., Kamaludin, M., & Ghani, A. N. (2022). Willingness to Pay for Renewable Energy: Evidence From High Wind and Wave Energy Potential Areas. Jurnal Ekonomi Malaysia, 56(1), 59–70. http://dx.doi.org/10.17576/JEM-2022-5601-05

@article{azlina2022willingness,
  title={Willingness to Pay for Renewable Energy: Evidence From High Wind and Wave Energy Potential Areas},
  author={Azlina, A. A. and Abu Bakar, Shahida and Kamaludin, Mahirah and Ghani, Awang Noor},
  journal={Jurnal Ekonomi Malaysia},
  volume={56},
  number={1},
  pages={59—70},
 

year={2022},
}

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