Do Consumers Want to Pay for Green Electricity? A Case Study from Poland

Abstract

This paper analyses the willingness to pay (WTP) for green electricity among residential consumers in Poland, which is the sixth most populous and eighth largest and most dynamic economy in the European Union. The current share of renewable energy sources (RES) in energy consumption is around 13.5% and is expected to increase. To estimate the mean WTP of the residential consumers in Poland, as well as its main determinants, an empirical survey has been conducted and a contingent valuation method has been used. The results obtained indicate that—above all—age, income, environmental attitudes, peer support, but also education and knowledge play the most important role in explaining consumers’ WTP for green electricity. Statistical analyses indicate that the mean WTP of Polish households is currently quite low (additional 3.5 USD per month), which is due to the relatively low GDP per capita, lack of knowledge about green energy and no past experience with green electricity tariffs.

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