Balancing affordability and sustainability: Evidence on public perceptions of reasonable electricity bills in Ho Chi Minh City, Vietnam

Abstract

Despite the Sustainable Development Goal of ensuring clean and affordable energy for all, research on electricity affordability remains limited. This study employs a stochastic payment card method to elicit perceptions of reasonable electricity bills in Ho Chi Minh City, Vietnam. A “reasonable” bill is generally considered affordable for consumers and sufficient to cover provision costs. Our findings support this definition, revealing that respondents view reasonable bills as affordable for all, including their households, sufficient to recover provision costs, and accessible to the poor. The results indicate that while low consumption tariffs (up to 200 kWh/month) are considered reasonable, higher consumption rates are viewed as excessively high and punitive, highlighting a disconnect between Increasing Block Tariffs and the need for affordable energy. 72% of respondents perceive middle-range bills as more reasonable than lower or higher extremes, indicating a preference for equitable pricing that aligns with sustainable provision. Additionally, perceptions of reasonable bills are shaped more by consumption than by deviations from personal usage levels, showing consistency across households without self-interest bias. This study highlights the need for tariff reforms that better balance affordability with equity and actual provision costs, advocating for less punitive structures for households with higher energy consumption.