Understanding Renewable Energy Technology Investments in the MCR-ADMU Webinar | News

On April 24, 2024, the My Climate Risk – Ateneo de Manila University (MCR-ADMU) Regional Center, hosted by the Ateneo Institute of Sustainability, organized a webinar titled: “Households’ Preferences and Willingness to Pay for Renewable Energy Technologies: Contingent Valuation and Choice Experimental Studies.” My Climate Risk is a beacon of the World Climate Research Program that aims to develop and mainstream a bottom-up approach to regional climate risk, and has a network of mycorrhizal centers covering all continents except Antarctica.

Dr. Rosalina Palanca-Tan, professor at the Department of Economics at Ateneo de Manila University, participated in the webinar as a speaker. During the session, Dr. Palanca-Tan shared findings from two studies she conducted that examined Metro Manila household preferences and willingness to pay for renewable energy technologies as part of climate change mitigation strategies.

Dr. Regina R Rodriguez, professor of physical oceanography at the Federal University of Santa Catarina in Brazil and co-chair of the My Climate Risk Scientific Steering Group, delivered the opening remarks on behalf of herself and her co-chair, Dr. Theodore G. Shepherd. Closing remarks were delivered by Dr. Leland Joseph R. Dela Cruz, Associate Vice President for Social and Environmental Engagement for Development and Sustainability (formerly Social Development, Environment and Community Engagement) at Ateneo de Manila University. The session was moderated by Daniel C. Ratilla, Climate and Disaster Resilience Program Specialist at the Ateneo Institute for Sustainable Development.

Dr. Regina R Rodriguez, in opening remarks, briefly discussed the vision, purpose and purpose of My Climate Risk, which includes developing and mainstreaming a “bottom-up” approach to regional climate risk. She also highlighted a study by EF Schumacher, emphasizing that the science of climate change, like Schumacher’s findings on economics, should be constructed “as if people mattered.” She added that both disciplines have many similarities, such as the need to take into account the complexity of local situations and the importance of simplicity in dealing with deep uncertainty.

Following introductory remarks, Dr. Palanca-Tan shared findings from two previously conducted studies that examined the willingness-to-pay (WTP) of Metro Manila households for renewable energy (RE) as a climate change mitigation strategy, considering the Philippines’ Vulnerability to Climate Change and their commitment to reduce greenhouse gas emissions by 75% by 2030.

Drawing on legal frameworks such as the 2008 Renewable Energy Act and subsequent policies such as the National Renewable Energy Program (NREP) 2011-2030, Dr. Palanca-Tan presented the legal and regulatory context to facilitate private sector participation in investment in renewable energy sources. In doing so, she also highlighted one inherent challenge: while renewable energy programs promise long-term environmental benefits, they impose immediate additional costs on consumers, promoting the study of households’ willingness to bear such financial burdens.

One of Dr. Palanca-Tan’s studies used a contingent pricing method to assess their willingness to accept varying levels of increases in their monthly electricity bills to finance renewable energy initiatives. Her findings reflect not only the economic dimensions of environmental management, but also provide insight into the social values ​​and perceptions underlying these decisions. Interestingly, the results revealed a diverse preference landscape among households living in Metro Manila. The study also included an experiment on the selection of alternatives and their associated costs, which showed that solar energy was the most preferred option.

Dr. Palanca-Tan’s presentation was followed by an open forum where she discussed the latest developments in the field of renewable energy, assessed participant requirements and the potential expansion of the study beyond Metro Manila. It also raised the issue that while it is acknowledged that solar energy costs are falling globally, the same trend is not yet fully visible in Southeast Asia, including the Philippines. She further highlighted ongoing and future research, including a study on people’s preferences for rooftop solar PV systems and electric vehicles (EVs), as well as expanding the survey to Davao City in particular.

The webinar included participants from the Philippines, as well as foreign participants from India, the United Kingdom, Botswana, Germany, Malaysia, Morocco, Nigeria, Rwanda, Sweden and Switzerland. This webinar is the first session in the 2024 iteration “Climate research ‘As if people matter'”, whose name comes from the article “Small is Beautiful: Learning about Climate Change as if People Matter” written by Dr. Regina R. Rodrigues and Dr. Theodore Shepherd. The series ran from April to May 2022. Replays and highlights of the event will be made available on the page below.