Willingness to Pay for Solar Home Systems in Faisalabad: An Application of Multitier Framework for Choice Experiment
DOI:
https://doi.org/10.54938/ijemdss.2026.05.3.762Keywords:
Willingness to Pay, Choice Experiments, Multi-tier Framework, Acceptance of Solar Home SystemsAbstract
Pakistan's high dependency on imported energy and environmental degradation has prompted a shift towards renewable energy sources, notably solar home systems. The study aims to assess the acceptance and willingness to pay for solar home systems in Faisalabad as well as to identify the determinants of solar energy adoption. A conditional logistic model are employed to determine the willingness to pay for a solar home system. The results indicate the total cost, cost of the battery, manufacturing company origin, manufacturing country significantly impact the acceptance of solar home systems (SHSs). A simple logit model is applied to check the determinants of solar home systems. Results showed that house size, exposure to SHSs, awareness about SHSs, and trust plays a significant role in the willingness to adopt SHSs. Conversely, gender, electricity bill, and environmental ethic negatively affect the willingness to adopt. This study offers valuable suggestions for policies promoting the acceptance of solar home systems. The findings underscore the significance of addressing cost, family status, and awareness as primary barriers to the adoption of solar home system
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