Households' Preferences for Alternative Renewable Energy Technologies: An Attribute-Based Choice Experiment Survey in Metro Manila, Philippines

• Main Authors: Palanca-Tan, Rosalina, del Barrio Alvarez, Daniel, Palanca, Ruth S., Tan, Nelson Matthew P., Castillo, Gem B., Saplala, Dino Carlo A., Wang, Nan
• Format: text
• Published: Archīum Ateneo 2024
• Subjects: biomass; choice experiment; climate change mitigation; renewable energy; small-scale hydropower; solar; willingness to pay; wind; Environmental Sciences; Oil, Gas, and Energy; Physical Sciences and Mathematics; Sustainability
• Online Access: https://archium.ateneo.edu/economics-faculty-pubs/220; https://archium.ateneo.edu/context/economics-faculty-pubs/article/1222/viewcontent/ijsdp_19.01_01.pdf
• Institution: Ateneo De Manila University

Using a choice-based conjoint analysis, we measured willingness to pay (WTP) for an increase in the share of specific Renewable Energy (RE) technologies, namely solar, wind, biomass, and small-scale hydropower. The study found that on average, Metro Manila (MM) households are WTP an additional 19.3% of their electricity bill for an additional 20% share of RE in electric power capacity that is sourced from solar power. The corresponding WTP for the other RE technologies are substantially lower - 11.9% for biomass, 10.5% for wind, and 9.8% for small-scale hydropower. The skewed preference for solar energy augurs well for the government's updated RE plan which stipulates that the bulk of additional RE supply will be sourced from solar. The positive marginal WTP for new and unconventional RE technologies likewise provide demand-side evidence for a RE plan that is much less focused and dependent on geothermal and large-scale hydropower, the traditional RE sources in the Philippines. Further, the higher WTP for biomass over wind and small-scale hydropower reveals some scope for intensifying support for waste-to-energy projects and increasing the share of biomass in the RE mix. The findings from the study suggest the need for appropriate information campaigns to raise public awareness on the less known RE technologies and on the role of RE in Climate Change (CC) mitigation, and to direct these campaigns more on high income households with high electricity bills and on female household heads.