A logistic regression approach to model the willingness of consumers to adopt renewable energy sources

Abstract

The implementation of renewable energy in this globalization era is inevitable since the non-renewable energy leads to climate change and global warming; hence, it does harm the environment and human life. However, in the developing countries, such as Indonesia, the implementation of the renewable energy sources does face technical and social problems. For the latter, renewable energy sources implementation is only effective if the public is aware of its benefits. This research tried to identify the determinants that influence consumers’ intention in adopting renewable energy sources. In addition, this research also tried to predict the consumers who are willing to apply the renewable energy sources in their houses using a logistic regression approach. A case study was conducted in Semarang, Indonesia. The result showed that only eight variables (from fifteen) that are significant statistically, i.e., educational background, employment status, income per month, average electricity cost per month, certainty about the efficiency of renewable energy project, relatives’ influence to adopt the renewable energy sources, energy tax deduction, and the condition of the price of the non-renewable energy sources. The finding of this study could be used as a basis for the government to set up a policy towards an implementation of the renewable energy sources.