Residents' willingness to pay for renewable electricity can bridge the gap in financing for renewable electricity development in China

Abstract

The current state in China is characterised by an increased demand for renewable electricity due to energy shortage and emission reduction targets. This study utilises the contingent valuation method (CVM) to investigate provincial residents' willingness to pay (WTP) for renewable electricity and employs the geographically weighted regression (GWR) model to analyse the spatial heterogeneity of influencing factors. The average WTP for renewable electricity among Chinese residents is 0.85 yuan/kWh, surpassing the current electricity price of 0.5 yuan/kWh. Reducing air pollution and the occurrence of haze is prioritised by residents (66.89%), followed by saving fossil energy and avoiding energy crises (10.09%), and reducing carbon emission and mitigating climate change (22.04%). Chinese residents pay more attention to the immediate impacts of renewable electricity on personal well-being and quality of life. Factors such as economic status, education background, air quality, health concerns, and environmental crisis awareness significantly influence WTP, with spatial disparities further compounding these effects. Sensitivity to economic level and air quality was observed in the southeast, while the southwest showed sensitivity to air quality, and the northwest exhibited sensitivity to environmental awareness. These findings suggest that residents' adoption of renewable electricity could partially alleviate China's funding gap in this sector. Recognising the factors that shape WTP provides a strategic pathway to enhance residents' financial support for renewable electricity initiatives.