Willingness To Pay for the Installation of Utility-Scale Solar Array in Lal-Lo and Gattaran, Cagayan, 2022

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

This study entitled "Willingness to Pay for the Installation of Utility-scale Solar Array in Lal-Lo and Gattaran, Cagayan, 2022" was conducted with the general objective of estimating the willingness to pay of household residents in Lal-lo and Gattaran, Cagayan for the installation of utility-scale solar array. Specifically, the study wanted to: (1) describe the utility-scale solar array project in Lal-lo, Cagayan; (2) estimate the electricity demand and supply in Lal-lo and Gattaran, Cagayan; (3) determine the preference of the residents of Lal-lo and Gattaran towards electricity source; (4) determine the factors affecting the willingness to pay of the residents of Lal-lo and Gattaran for the installation of utility-scale solar array; and (5) recommend possible courses of action that would promote the use of solar energy as an alternative energy source.

A total of 100 respondents were surveyed from the municipalities of Gattaran and Lal-lo, Cagayan wherein 55 were from the former and 45 were from the latter. The Turnball Lower-Bound Mean WTP was used to estimate the willingness to pay of the respondents. Moreover, logistic regression analysis was used to determine whether the WTP response has a significant relationship with bid price, age, monthly electricity bill, monthly income, number of family members, and education as well as descriptive analysis to describe these predictors.

The results of the study showed that the mean WTP was estimated to be Php 7.42 per Kwh. The logistic regression model found that bid price, monthly bill, and monthly income were statistically significant at the one percent level. Specifically, higher bid prices and monthly bills decrease the likelihood of WTP, while higher monthly incomes slightly increase it. Conversely, the variables age, education, and family members were not statistically at the five percent level, implying they don't substantially influence the respondents' WTP.

The issues identified in Lal-lo and Gattaran involve a lack of awareness and/or understanding of solar energy, frequent brownouts and an unreliable electricity supply, and persistent shortfall in the contracted supply of electricity which cannot meet the growing demand. The study recommends to implement community outreach initiatives, workshops, and information campaigns to address the lack of awareness, explore alternative energy sources specifically solar energy and investing in the maintenance and upgrade of existing infrastructure for the unreliable electricity supply, and increasing the contracted electricity supply.

Language

English

LC Subject

Electric power—Conservation, Willingness to pay

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 L33

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS