Project – Factors influencing Demand for renewable energy among the middle class in Lagos State

ABSTRACT

The study examines factors influencing Demand for renewable energy among the middle class in Lagos State. A study of Transez Nigeria Limited. Four research objectives were used for the study namely: to examine the level of awareness of renewable energy options among the middle class in Lagos State; to identify the key factors that influence the demand for renewable energy among the middle class in Lagos State; to assess the affordability of renewable energy sources for the middle class in Lagos State; to evaluate the impact of government policies on the demand for renewable energy among the middle class in Lagos State. A total number of one hundred (100) workers of Transez Nigeria Limited. A simple random sampling techniques was used for the study. The study recommends that the Lagos State government should prioritize the affordability of renewable energy sources. The study concluded that Affordability of renewable energy sources has significant impact on the middle class in Lagos State.

CHAPTER ONE

INTRODUCTION

• Background to the Study

The demand for renewable energy among the middle class in Lagos state is influenced by several factors. According to a study by Oyedepo (2012), the primary factor is the increasing awareness of the environmental benefits of renewable energy. The middle class in Lagos is becoming more conscious of the environmental impact of their energy consumption and are therefore seeking out renewable energy sources. This is in line with global trends, as a report by the International Renewable Energy Agency (IRENA) shows that environmental consciousness is a significant driver of renewable energy demand worldwide.

Another factor influencing the demand for renewable energy in Lagos is the cost and reliability of traditional energy sources. According to a study by Adaramola, Paul, and Oyewola (2011), the middle class in Lagos often experiences power outages and high electricity bills, which has led to a growing interest in renewable energy sources that are more reliable and potentially cheaper in the long run. This is supported by a report by the World Bank, which states that the high cost and unreliability of traditional energy sources are significant drivers of renewable energy demand in developing countries.

The government’s policies and incentives also play a crucial role in shaping the demand for renewable energy. According to a report by the Nigerian Renewable Energy Policy (2015), the Nigerian government has implemented several policies and incentives to promote the use of renewable energy. These include tax incentives, grants, and low-interest loans for renewable energy projects. These policies have made renewable energy more accessible and affordable for the middle class in Lagos.

However, there are also barriers to the adoption of renewable energy among the middle class in Lagos. According to a study by Oseni (2012), these barriers include the high upfront cost of renewable energy systems, lack of awareness about renewable energy options, and lack of technical expertise. These barriers need to be addressed to increase the demand for renewable energy among the middle class in Lagos.

The demand for renewable energy among the middle class in Lagos is influenced by a variety of factors, including environmental consciousness, the cost and reliability of traditional energy sources, government policies and incentives, and barriers to adoption. Further research is needed to understand these factors in more detail and develop strategies to increase the demand for renewable energy among the middle class in Lagos.

• Statement of the Problem

The problem of renewable energy demand among the middle class in Lagos state is a multifaceted issue. The first factor that influences this demand is the cost of renewable energy technologies. According to a study by Oyedepo (2012), the high initial cost of renewable energy technologies is a significant barrier to their adoption among the middle class in Lagos. The study found that while many middle-class households are interested in renewable energy, the high upfront costs make it inaccessible for many.

The second factor influencing the demand for renewable energy is the lack of awareness and knowledge about renewable energy technologies. A study by Oseni (2012) found that many middle-class households in Lagos are not aware of the benefits of renewable energy or how to access and use these technologies. This lack of knowledge and awareness is a significant barrier to the adoption of renewable energy.

The third factor is the reliability and efficiency of renewable energy technologies. According to a study by Uzoma et al. (2016), many middle-class households in Lagos have concerns about the reliability and efficiency of renewable energy technologies. These concerns are often based on misconceptions and misinformation, but they nonetheless influence the demand for renewable energy.

The fourth factor is the availability of renewable energy technologies. A study by Adaramola et al. (2014) found that the availability of renewable energy technologies in Lagos is limited, particularly for middle-class households. This lack of availability is a significant barrier to the adoption of renewable energy.

The fifth factor is government policy and support. According to a study by Oyedepo (2012), government policy and support play a crucial role in promoting the adoption of renewable energy. However, the study found that the Nigerian government’s support for renewable energy is limited, which hinders the demand for renewable energy among the middle class in Lagos.

The demand for renewable energy among the middle class in Lagos state is influenced by a variety of factors, including cost, awareness and knowledge, reliability and efficiency, availability, and government policy and support. Addressing these issues is crucial for promoting the adoption of renewable energy among the middle class in Lagos state.

• Aim and Objectives of the Study

The aim of the study is to examine the factors influencing Demand for renewable energy among the middle class in Lagos State. The specific objectives are:

1. To examine the level of awareness of renewable energy options among the middle class in Lagos State.
2. To identify the key factors that influence the demand for renewable energy among the middle class in Lagos State.
3. To assess the affordability of renewable energy sources for the middle class in Lagos State.
4. To evaluate the impact of government policies on the demand for renewable energy among the middle class in Lagos State.

• Research Questions

The research questions are buttressed below:

1. What is the level of awareness of renewable energy options among the middle class in Lagos State?
2. What are the key factors that influence the demand for renewable energy among the middle class in Lagos State?
3. How affordable are renewable energy sources for the middle class in Lagos State?
4. What is the impact of government policies on the demand for renewable energy among the middle class in Lagos State?

• Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Affordability of renewable energy sources has no significant impact on the middle class in Lagos State.

H1: Affordability of renewable energy sources has significant impact on the middle class in Lagos State.

• Significance of the Study

The study of factors influencing the demand for renewable energy among the middle class in Lagos State holds significant implications for several reasons.

Firstly, understanding these factors can help policymakers and energy providers to tailor their strategies and services to meet the needs and preferences of this demographic. This could potentially lead to increased adoption of renewable energy sources, contributing to environmental sustainability and energy security in Lagos State.

Secondly, this study could shed light on the barriers that prevent the middle class from fully embracing renewable energy. These could range from lack of awareness or knowledge about renewable energy options, to financial constraints, to infrastructural challenges. By identifying these barriers, steps can be taken to address them and make renewable energy more accessible and appealing to the middle class.

Thirdly, the findings of this study could be used to inform the development of educational and promotional campaigns about renewable energy. If it is found that awareness and knowledge are significant factors influencing demand, then efforts can be made to increase public understanding and acceptance of renewable energy.

Fourthly, this study could also have implications for the design of government policies and incentives related to renewable energy. If certain policies are found to be particularly effective or ineffective in driving demand among the middle class, this information could be used to refine these policies and make them more effective.

Lastly, this study could contribute to the broader academic literature on renewable energy adoption. While numerous studies have been conducted on this topic in various contexts, there is still much to learn about the specific factors that influence demand among different demographic groups, including the middle class in Lagos State. This study could help to fill this gap in the literature.

• Scope of the Study

The study examines the factors influencing Demand for renewable energy among the middle class in Lagos State. (A study of Transez Nigeria Limited).

• Operational Definition of Terms

“Influence” refers to the capacity to have an effect on someone’s character, development, or behavior. It can also refer to the power to shape policy or ensure favorable treatment from someone, especially through status, contacts, or wealth.

“Demand” in economic terms, refers to the desire of purchasers, consumers, clients, employers, etc., for a particular commodity, service, or other item. It is often coupled with the ability and willingness to pay a price for a specific good or service.

“Renewable energy” is energy that is collected from renewable resources, which are naturally replenished on a human timescale. This includes sunlight, wind, rain, tides, waves, and geothermal heat. Renewable energy often provides energy in four important areas: electricity generation, air and water heating/cooling, transportation, and rural (off-grid) energy services.

The “middle class” is a social group that falls between the working class and the upper class. The middle class includes individuals and households who fall between the 25th and 75th percentile of income distributions. In the context of Lagos State, the middle class would refer to those who have a moderate level of income, typically characterized by secure employment, ownership of a home and car, and the ability to save and invest for the future.

Project – Factors influencing Demand for renewable energy among the middle class in Lagos State