How Knowledge, Government Involvement and Awareness Influence Generation Z’s Willingness to Pay for Sustainable Energy? An Ipma Approach
List of Authors
Amar Hisham Jaaffar, Amir Imran Zainoddin, Mohd Faiz Abu Bakkar, Muhummad Khairul Islam, Siti Indati Mustapa
Keyword
Generation Z; Willingness to Pay; Sustainable Energy Sources; Knowledge; Awareness on Benefit; Government Involvement
Abstract
Understanding young consumers’ willingness to pay (WTP) for sustainable energy is critical to Malaysia’s energy transition, yet empirical evidence remains scarce. This study examines how awareness of environmental benefits, perceived government involvement, and knowledge of sustainable energy influence Generation Z’s WTP for electricity derived from renewable sources. Drawing upon the Theory of Planned Behaviour, Consumer Socialisation Theory, and Institutional Theory, data from 400 respondents were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and Importance–Performance Map Analysis (IPMA). Results show that government involvement and knowledge significantly enhance WTP, while awareness alone has little effect. The model explains 46 percent of the variance in WTP and reveals that although youth value government leadership and policy consistency, they perceive gaps in implementation and incentives. These insights highlight that trust in institutions and energy literacy are more decisive than general awareness. The study provides policy guidance to strengthen institutional credibility, expand energy education, and design transparent incentives for youth participation in Malaysia’s clean-energy agenda.