Assessing preferences and willingness to pay for renewable energy investment among manufacturing sectors in Malaysia: a choice experiment method

Siti Noradiah Amar, . and Mahirah Kamaludin, . and Azlina Abd Aziz, . and Muhamad Rias K V Zainuddin, . and Khairul Izzuddin Sulaiman, . (2024) Assessing preferences and willingness to pay for renewable energy investment among manufacturing sectors in Malaysia: a choice experiment method. Journal of Sustainability Science and Management (Malaysia), 19 (4). pp. 73-86. ISSN 2672-7226

Green energy has become a hot debate among countries. Most countries prefer green energy over fossil resources that can violate the environment and health. The manufacturing sector was the most energy-intensive sector in Malaysia, and Johor was the fastest-growing industrial state and the biggest user of fuel energy. The cost factor has become one of the reasons why renewable energy is less used in this country. If not curbed, this situation will thwart the government’s target to reduce the dependency on non–renewable energy. Thus, participation from the manufacturing sector is important to support government efforts to empower renewable energy. Support from the manufacturing sector and their Willingness to Pay (WTP) for energy production from renewable energy resources remain key ingredients for a successful energy policy. This study aims to estimate the WTP for renewable energy investment attributes among the manufacturing sectors in Johor, Malaysia. A series of stated Choice Experiments (CE) was used in which the Multinomial Logit (MNL) model was valued to ascertain manufacturing sectors’ WTP based on their preferences for the attributes. The results revealed that the manufacturing sector values project location and annual GHG reduction.

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Abstract

Green energy has become a hot debate among countries. Most countries prefer green energy over fossil resources that can violate the environment and health. The manufacturing sector was the most energy-intensive sector in Malaysia, and Johor was the fastest-growing industrial state and the biggest user of fuel energy. The cost factor has become one of the reasons why renewable energy is less used in this country. If not curbed, this situation will thwart the government’s target to reduce the dependency on non–renewable energy. Thus, participation from the manufacturing sector is important to support government efforts to empower renewable energy. Support from the manufacturing sector and their Willingness to Pay (WTP) for energy production from renewable energy resources remain key ingredients for a successful energy policy. This study aims to estimate the WTP for renewable energy investment attributes among the manufacturing sectors in Johor, Malaysia. A series of stated Choice Experiments (CE) was used in which the Multinomial Logit (MNL) model was valued to ascertain manufacturing sectors’ WTP based on their preferences for the attributes. The results revealed that the manufacturing sector values project location and annual GHG reduction.

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Item Type:	Article
AGROVOC Term:	renewable energy
AGROVOC Term:	manufacturing
AGROVOC Term:	electrical energy
AGROVOC Term:	energy consumption
AGROVOC Term:	surveys
AGROVOC Term:	consumers
AGROVOC Term:	sustainable development
AGROVOC Term:	market prices
Geographical Term:	Malaysia
Depositing User:	Mr. Khoirul Asrimi Md Nor
Date Deposited:	10 Mar 2025 06:25
Last Modified:	10 Mar 2025 06:25
URI:	http://webagris.upm.edu.my/id/eprint/2485

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