Willingness to pay for renewable energy installations in rural areas: Exploring farmers' motives and barriers through a survey in Lithuania

Abstract

Promotion of renewable energy sources (RES) has become increasingly important across the globe due to the sustainable development goals. Countries without fossil energy endowments are especially keen to embark on the introduction of additional RES in the energy mix. The agricultural sector rewards particular attention as land used for RES increases pressure for other activities in rural areas. This paper explores the motivations, drivers, and barriers to use renewables in Lithuanian family farms. A survey was carried out to assess the willingness to pay and willingness to accept RES. The results suggest that 57 % of Lithuanian family farms use RES, whereas 67 % of those not using RES would like to do so. The non-parametric regression showed that, when renting out or selling the land for RES installations, farmers operating larger farms exhibit higher willingness to accept compared to those operating small farms. Measures related to the reduction of financial and institutional burdens, as well as know-how, are the top priorities to increase RES adoption among Lithuanian farmers.