PERCEPTIONS AND WILLINGNESS TO PAY FOR GREEN ELECTRICITY PLANS IN SINGAPORE

Abstract

Singapore’s power sector currently contributes to 40% of the country’s carbon emissions due to its high reliance on natural gas (95%) in the energy mix. Despite government initiatives to increase reliance on renewable energy sources, the pace of progress may not be sufficient for Singapore to achieve a carbon-neutral state as outlined in the Singapore Green Plan 2030. The purpose of this dissertation is to study the degree of adoption of green electricity plans in Singapore, and examine the key psychological, economic and socio-demographic factors that influence individuals’ willingness to pay for such plans while considering the interactions among these factors. The hypotheses for socio-demographic factors were tested using one-way ANOVA tests, independent sample t-tests, and simple linear regressions, while the hypotheses for psychological and economic variables were tested using hierarchical regression analysis on data collected from 88 respondents in Singapore via a survey questionnaire. The findings indicate that the constructs of Theory of Planned Behaviour (TPB), namely attitude, subjective norms and perceived behavioural control, as well as the extensions to TPB such as energy for environmental sustainability awareness are significant and positive predictors of consumers’ intentions to purchase green electricity plans, while age is a significant and negative predictor. The research findings can then be provided to policymakers and electricity retailers to develop suitable policies and approaches that will encourage more individuals to subscribe to green electricity plans in Singapore.