Document Type : Research Article


Department of Infrastructure, Symbiosis Centre for Management and Human Resource Development, Symbiosis International (Deemed University), Pune, India.


Despite the falling costs of Renewable Energy (RE), RE adoption in Indian residential households is still at tepid growth rates. With the onset of retail electricity market deregulation in India, the introduction of “green tariffs” for residential households can be effective in resolving the issue of low RE adoption. This study investigates the willingness to pay for green tariffs/renewable energy-based electricity contracts using the contingent valuation method. Data collected from 476 Indian residential households are analyzed by the Double-Bounded Dichotomous Choice technique. The results of the conducted maximum Likelihood Estimation (MLE) method reveal the mean willingness to pay 308.52 Rs per household/month for consumption of green power in a premium-paying setting. Results indicate that although households hold positive perception of renewable energy, the willingness to pay is not commensurately high, indicating an attitude-action gap. The study recommends green energy defaults in residential energy contracts, direct marketing of non-use value of RE use (altruistic and bequest) by power supplying utilities, and promoting RE use through RE opinion champions/influencers as measures to enhance RE adoption amongst Indian residential energy consumers.


Main Subjects

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