Willingness to Pay for Renewable Energy: A Case Study of Faisalabad

Every economy requires energy consumption to develop, yet the usage of non-renewable energy has negative ecological consequences. One more issue is that nonrenewable sources are scarce in comparison to energy demands. Renewable energy is the only way to solve these challenges in such a situation. Renewable energy investment is growing, UBt it is still in its early stages in Pakistan. Solar panels and wind energy account for the majority of renewable energy investment. Pakistan has a lot of potential for solar energy because the sun shines for 8 to 8.5 hours every day. The major goal of this research was to find out how people in Faisalabad responded towards this possible investment. The study's questionnaire was created utilizing the contingent valuation method. The elicitation approach used to examine the willingness to pay for solar energy was the double bounded dichotomous choice. Face-to-face interviews with 120 respondents were done in Faisalabad's Jinnah colony, Madina Town, Muslim Town, and Sitara sapna colony. In the study's sample, there were 60 residences with solar energy source and 60 were without this facility. The data in this research was analyzed using both parametric and non-parametric methods. Double bounded logistic regression is used in the parametric approach. The total WPAY model and the marginal WPAY model are both used in this technique. literacy, age, wealth, house size, and numbers of residence all have a favorable connection with WPAY in both models. However, in both models, proposal amount has negative association with WPAY. When comparing the non-parametric and parametric approaches, the average WPAY is lower in the non-parametric approach.