Social acceptance of renewable energy sources: A review of contingent valuation applications

Abstract

This paper presents a literature review addressing the public acceptance of renewable energy as a replacement for fossil fuels in electricity production. This review was motivated by the global tendency for a substitution of conventional fuels by renewable energy sources (RES) during the global financial crisis. It studies research on the preferences and attitudes of local communities towards investments in renewable energy projects and their perception of the use of new energy technologies in their daily lives, through various case studies worldwide. An effort is made to identify the parameters that influence consumers' energy behaviour, together with their interest, or lack thereof, in the environmental impact of using fossil fuels to produce energy and their willingness to reduce it. Applications of contingent valuation are examined, which are employed to analyse public attitudes towards the use of RES for electricity production. Willingness-to-pay is observed to be correlated to socioeconomic characteristics including education, interest in environmental issues and knowledge of RES. Finally, the profile of a typical green energy consumer and appropriate policy paths for the penetration of RES into the energy market are outlined.