Queensland consumers' willingness to pay for electricity from renewable energy sources

In this paper, the results of a survey of Queensland households regarding their willingness to pay for renewable energy and support of the Federal Government Renewable Energy Target (MRET) policy are presented. Using results from this survey the perceived benefits to consumers’ of the electricity generated from the renewable energy is analysed. Survey results suggest that many respondents are willing to pay for green energy in general, while some of them are willing to pay for the benefits of future generations. Furthermore, the results suggested that some respondents are willing to pay for renewable energy for the reasons other than decreased air emissions. The results showed that the respondents holding the perception that a particular electricity generation technology does negatively affect the environment had a significantly different WTP compared to respondents holding the perceptions that the technology does not negatively affect the environment. Finally, consumers are willing to pay significantly more if voluntary payments were made possible compared to the Mandatory Renewable Energy imposts. This is always a possibility with stated preferences that survey results may overstate actual willingness to pay. However, the results still provide a valuable insight on consumers’ preferences. The results indicate that a more effective renewable energy policy reflecting these preferences can be put in place. In sum, the results suggest that consumer driven purchases can, in part, support the future of renewable generation capacity in Queensland, though reliance upon other policy alternatives may be needed.