Towards a cleaner environment: Determinants of willingness to pay for clean air and renewable energy in Poland
Towards a cleaner environment: Determinants of willingness to pay for clean air and renewable energy in Poland

Summary/Abstract: Objective: The article aims to compare the willingness to pay for energy from renewable sources with the willingness to pay for clean air in Poland and to establish factors that influence these phenomena. These topics are usually addressed in separate studies, making a credible comparison difficult. Research Design & Methods: We survey a representative group of single-family residents and apply advanced machine learning techniques based on Bayesian model selection (averaging) to construct a credible list of factors that determine willingness to pay for clean energy. Findings: We find that people are willing to pay more for clean air than for energy from renewable sources. Both aspects of willingness to pay are affected by the size of the electricity bills, the importance of the environment and the knowledge about renewable energy supplies. Willingness to pay for energy from renewable sources is also influenced by educational level and awareness of the need to increase the share of renewable energy in the domestic energy mix. Furthermore, we find that young people are more willing to pay for energy from renewable sources, whereas older people are more likely to pay for clean air. Implications & Recommendations: Arguably, a higher willingness to pay requires, first and foremost, greater environmental awareness and the promotion of its benefits among the population at large. Since willingness to pay studies are based on respondents' declarations, their actual willingness to bear the costs of energy transition may be lower. A variety of initiatives should be taken to foster closer bonds between people and their environment to make them feel more responsible for the shared objective. Contribution & Value Added: The study bridges a significant gap by examining the willingness to pay for renewable energy and clean air in the same sample of respondents. We focus on single-family home residents. Using quantitative methods, we identify factors that are common to willingness to pay for clean air and renewable energy sources, as well as those that are specific to each type.

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