Measuring public acceptance on renewable energy (RE) development in Malaysia using ordered probit model

Abstract

In 2009, government of Malaysia has announced a National Renewable Energy Policy and Action Plan as part of their commitment to accelerate the growth in renewable energies (RE). However, an adoption of RE as a main source of energy is still at an early stage due to lack of public awareness and acceptance on RE. Up to date, there are insufficient studies done on the reasons behind this lack of awareness and acceptance. Therefore, this paper is interested to investigate the public acceptance towards development of RE by measuring their willingness to pay slightly more for energy generated from RE sources, denote as willingness level and whether the importance for the electricity to be supplied at absolute lowest possible cost regardless of source and environmental impact, denote as importance level and other socio-economic factors could improve their willingness level. Both qualitative and quantitative research methods are used to achieve the research objectives. A total of 164 respondents from local universities in Malaysia participated in a survey to collect this relevant information. Using Ordered Probit model, the study shows that among the relevant socio-economic factors, age seems to be an important factor to influence the willingness level of the respondents. This paper concludes that younger generation are more willing to pay slightly more for energy generated from RE sources as compared to older generation. One of the possible reason may due to better information access by the younger generation on the RE issues and its positive implication to the world. Finding from this paper is useful to help policy maker in designing RE advocacy programs that would be able to secure public participation. These efforts are important to ensure future success of the RE policy.