Do positive aspects of renewable energy contribute to the willingness to pay more for green energy?

Development of renewable energy arguably depends on the choices of private consumers. The commitment to consume green energy means paying a higher price for energy compared the conventional energy sources, and motivating people to pay more for renewable energy is still a great challenge. The promotion of renewable energy is related to the three main positive aspects of green energy: outcomes on environment, outcomes on the country's development level and the social pressure. Focusing on these aspects, their impact on willingness to pay more for green energy in Lithuania was analyzed in this study. The regression analysis results showed that environmental concern negatively and insignificantly influenced willingness to pay more for green energy. Nevertheless, environmental concern affected willingness to pay indirectly, as an interaction of environmental concern and knowledge about green energy outcomes on environment. Pressure of subjective norms also significantly and positively determined the willingness to pay more. Meanwhile, knowledge about green energy outcomes on the country's level of development insignificantly motivated people to pay more for green energy. Out of socio-demographic factors, only age and income significantly influenced willingness to pay more for green energy, while gender insignificantly determined this intention. Therefore, this study provides new insights and possible policy implications in the context of country peculiarities, relevant to the whole Central Eastern Europe. (C) 2021 Elsevier Ltd. All rights reserved.

Automated summary

The development of renewable energy largely relies on the choices made by private consumers. The willingness to pay more for green energy remains a challenge, with factors such as environmental concern, subjective norms, income, and age influencing this decision. While knowledge about the environmental impact and pressure from social norms play a significant role, factors like gender do not have a significant impact in influencing consumers' willingness to pay more for green energy.