Elsevier

Renewable Energy

Volume 38, Issue 1, February 2012, Pages 169-172
Renewable Energy

Which factors affect the willingness of tourists to pay for renewable energy?

https://doi.org/10.1016/j.renene.2011.07.022Get rights and content

Abstract

This study presents insights into the determinants of tourists’ intention to pay a premium for accommodation in a hotel with renewable energy sources. The empirical analysis is based on the estimation of binary logistic regression models. Four subsets of independent variables were used in this empirical analysis, namely: (i) demographic factors, (ii) economic variables, (iii) past experience with regard to renewable energy sources, and (iv) variables regarding environmental awareness and information dissemination. Empirical results suggest that middle-aged people are probably more willing to pay for their stay in a hotel using renewable energy. In general, men are more likely than women to pay extra money for accommodation in a “green” hotel. However, the results suggest that marital status and educational level are not statistically significant factors in the willingness to pay more. Rather, environmentally-conscious and adequately informed tourists are more willing to pay for renewable energy than others. Our analysis is focused on intention because we expect that those people willing to pay for staying in a green hotel are a potentially relevant market segment for developing sustainable tourism in Greece.

Highlights

► We examined the determinants that affect tourists’ intention to pay more for their stay in a hotel using RES. ► We carried out an extensive survey of 400 foreign tourists. ► We estimated logistic regression models of tourists’ willingness to pay more to stay in a hotel with RES. ► We concluded that demographics, information dissemination and environmental awareness affect the willingness to pay for RES.

Introduction

Contrary to fossil fuels, the intensive use of renewable energy is inextricably linked to zero greenhouse gas emissions. Thus, the penetration and implementation of renewable energy projects is one of the major goals of European countries in their quest for achieving sustainable development. However, the use of renewable energy sources is strongly related to public acceptance.

Previous studies have focused on attitudes toward green energy and on acceptance of renewable energy sources [1], [2], [3], [4], [5]. Others have examined the intention of hotel customers to stay at a green hotel employing the theory of planned behavior [6], [7]. In general, consumers who are more receptive to environmental products, and choose to purchase them, are willing to pay more for environmental benefits. A positive attitude of Australian tourists in relation to renewable energy supply for hotel accommodation has been assessed by Dalton et al. [8]. Empirical studies have also focused on the amount that consumers are willing to pay by way of premium for renewable energy investments and the role of socio-demographic determinants in the case of Italy [9] and Korea [10].

Several studies have been conducted on the issue of renewable energy penetration in Crete [11], [12]. Crete hosts one-fifth of all tourists visiting Greece. More than 50% of all renewable energy projects in the Greek islands are implemented in Crete [13]. The willingness of Crete’s residents to pay for renewable energy sources was investigated by Zografakis et al. [14].

The aim of this study is to examine the determinants that affect tourists’ intention to pay more for their stay in a hotel using renewable energy sources. For this purpose, we employ cross-section data from the largest Greek island, Crete. Unlike previous studies, we chose tourists because we expect tourists willing to pay for a stay in a green hotel to be a potential market segment important for the development of sustainable tourism on the island.

The paper proceeds as follows: Section 2 presents the methodological issues and the data used in the empirical analysis. Section 3 presents the empirical results, while the conclusions of the analysis and policy implications are discussed in Section 4.

Section snippets

Methodological issues and data

The research provides some insights into the determinants that affect tourists’ positive attitude toward renewable energy. The empirical analysis is based on a cross-section data set. We carried out an extensive survey of 400 foreign tourists during their summer holidays in Crete in 2009, using the random stratified sampling method. In particular, we distributed 100 questionnaires in each of the fourth prefectures of the island (Chania, Rethymno, Heraklion and Lasithi). The survey was conducted

Results

In this section we present the results of the statistical and econometric analyses to estimate the profile of ‘green’ tourists. As ‘green’ tourists we define those consumers willing to pay extra for accommodation in a hotel using renewable energy sources.

Discussion and conclusions

This paper has focused on providing insights into which factors affect tourists’ willingness to pay for renewable energy sources in Greece. The empirical results suggest that middle-aged people and men are more likely than others to pay a premium for accommodation in a hotel with renewable energy practices. This study also shows the importance of information dissemination and environmental awareness in the willingness to pay for renewable energy sources. In particular, past experience,

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