Willingness to pay for green energy: Evidence from Italian households

This study investigates the willingness to pay (WTP) of Italian households for green electricity and gas using data from an ad-hoc survey conducted by FORMAT RESEARCH. A double-bounded discrete choice model is employed to estimate WTP and assess its relationship to socio-demographic, psychological, and attitudinal factors. The findings indicate a strong correlation between WTP and income, environmental concern, and sustainable behaviors, while age is inversely related to financial support for renewable energy sources. Furthermore, the study identifies significant variations in WTP between green electricity and green gas, pointing out differing levels of consumer awareness and acceptance. The results yield valuable insights for policy-makers, emphasizing the importance of tailored strategies and equitable cost-sharing mechanisms to enhance public support for renewable energy policies, particularly in light of economic and social constraints. By treating WTP as a signal of both economic acceptance and civic endorsement, this study highlights its potential to inform the design of inclusive, equitable, and publicly accountable energy policies, core priorities within the governance frameworks required for a just transition. • WTP for RES energy is estimated to assess public support for green policies. • WTP estimates are positive, indicating strong support for green electricity and gas. • Age negatively affects WTP for renewable energy sources. • Environmental concern and habits drive higher WTP for RES.