IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v174y2023ics0301421523000368.html
   My bibliography  Save this article

In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?

Author

Listed:
  • Liu, Diyi
  • Qi, Suntong
  • Xu, Tiantong

Abstract

With the forthcoming post-subsidy era, how to incentivize consumers to become solar prosumers is a critical issue. Considering the prosuming-value perception, we proposed a Comprehensive Behavior Determination Model (CBDM) to study consumers' intention of becoming solar prosumers, based on the theory of planned behavior and the theory of consumer perceived value. Using a combination of latent and observed variables within a non-linear structural equation model, our analysis identifies the key driving factors of becoming prosumers based on a large-scale survey of 14,646 respondents. We found that perceived value is vital in driving consumers' transformation intention. Especially in the developed southern regions, the perceived benefit (i.e., earnings from selling electricity) exerts the most significant influence on consumers' intention to become prosumers. Differently, in the northern regions’ rural areas, subjective norms play a vital role in driving consumers to become prosumers as they are more influenced by their social surroundings (e.g., neighbors, village chief). In the undeveloped western regions, consumers usually have more knowledge about solar panels, while they have lower perceived behavioral control due to constrained external conditions such as insufficient funds, subsidy defaults, etc.

Suggested Citation

  • Liu, Diyi & Qi, Suntong & Xu, Tiantong, 2023. "In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?," Energy Policy, Elsevier, vol. 174(C).
  • Handle: RePEc:eee:enepol:v:174:y:2023:i:c:s0301421523000368
    DOI: 10.1016/j.enpol.2023.113451
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523000368
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2023.113451?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oberst, Christian A. & Schmitz, Hendrik & Madlener, Reinhard, 2019. "Are Prosumer Households That Much Different? Evidence From Stated Residential Energy Consumption in Germany," Ecological Economics, Elsevier, vol. 158(C), pages 101-115.
    2. Joe Pitt & Colin Nolden, 2020. "Post-Subsidy Solar PV Business Models to Tackle Fuel Poverty in Multi-Occupancy Social Housing," Energies, MDPI, vol. 13(18), pages 1-15, September.
    3. Nyrud, Anders Q. & Roos, Anders & Sande, Jon Bingen, 2008. "Residential bioenergy heating: A study of consumer perceptions of improved woodstoves," Energy Policy, Elsevier, vol. 36(8), pages 3159-3166, August.
    4. Bashiri, Ali & Alizadeh, Sasan H., 2018. "The analysis of demographics, environmental and knowledge factors affecting prospective residential PV system adoption: A study in Tehran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3131-3139.
    5. Xiong, Yongqing & Yang, Xiaohan, 2016. "Government subsidies for the Chinese photovoltaic industry," Energy Policy, Elsevier, vol. 99(C), pages 111-119.
    6. Yadav, Rambalak & Pathak, Govind S., 2017. "Determinants of Consumers' Green Purchase Behavior in a Developing Nation: Applying and Extending the Theory of Planned Behavior," Ecological Economics, Elsevier, vol. 134(C), pages 114-122.
    7. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    8. Mitscher, Martin & Rüther, Ricardo, 2012. "Economic performance and policies for grid-connected residential solar photovoltaic systems in Brazil," Energy Policy, Elsevier, vol. 49(C), pages 688-694.
    9. Kim, Heetae & Park, Eunil & Kwon, Sang Jib & Ohm, Jay Y. & Chang, Hyun Joon, 2014. "An integrated adoption model of solar energy technologies in South Korea," Renewable Energy, Elsevier, vol. 66(C), pages 523-531.
    10. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    11. Abreu, Joana & Wingartz, Nathalie & Hardy, Natasha, 2019. "New trends in solar: A comparative study assessing the attitudes towards the adoption of rooftop PV," Energy Policy, Elsevier, vol. 128(C), pages 347-363.
    12. Zhao, Xingang & Zeng, Yiping & Zhao, Di, 2015. "Distributed solar photovoltaics in China: Policies and economic performance," Energy, Elsevier, vol. 88(C), pages 572-583.
    13. Ansarin, Mohammad & Ghiassi-Farrokhfal, Yashar & Ketter, Wolfgang & Collins, John, 2020. "Cross-subsidies among residential electricity prosumers from tariff design and metering infrastructure," Energy Policy, Elsevier, vol. 145(C).
    14. Juran Kim, 2020. "The influence of perceived costs and perceived benefits on AI-driven interactive recommendation agent value," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 30(3), pages 319-333, July.
    15. Alzubaidi, Hawazin & Slade, Emma L. & Dwivedi, Yogesh K., 2021. "Examining antecedents of consumers’ pro-environmental behaviours: TPB extended with materialism and innovativeness," Journal of Business Research, Elsevier, vol. 122(C), pages 685-699.
    16. Qiu, Yueming & Kahn, Matthew E. & Xing, Bo, 2019. "Quantifying the rebound effects of residential solar panel adoption," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 310-341.
    17. Aklin, Michaël & Cheng, Chao-Yo & Urpelainen, Johannes, 2018. "Social acceptance of new energy technology in developing countries: A framing experiment in rural India," Energy Policy, Elsevier, vol. 113(C), pages 466-477.
    18. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2016. "Review of barriers to the dissemination of decentralized renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 477-490.
    19. Kirsi Kotilainen & Ulla A. Saari, 2018. "Policy Influence on Consumers’ Evolution into Prosumers—Empirical Findings from an Exploratory Survey in Europe," Sustainability, MDPI, vol. 10(1), pages 1-22, January.
    20. Aryandoust, Arsam & Lilliestam, Johan, 2017. "The potential and usefulness of demand response to provide electricity system services," Applied Energy, Elsevier, vol. 204(C), pages 749-766.
    21. Zaremohzzabieh, Zeinab & Ismail, Normala & Ahrari, Seyedali & Abu Samah, Asnarulkhadi, 2021. "The effects of consumer attitude on green purchase intention: A meta-analytic path analysis," Journal of Business Research, Elsevier, vol. 132(C), pages 732-743.
    22. Anna Kowalska-Pyzalska & Marek Kott & Joanna Kott, 2021. "How Much Polish Consumers Know about Alternative Fuel Vehicles? Impact of Knowledge on the Willingness to Buy," Energies, MDPI, vol. 14(5), pages 1-19, March.
    23. Ouyang, Danhua & Zhou, Shen & Ou, Xunmin, 2021. "The total cost of electric vehicle ownership: A consumer-oriented study of China's post-subsidy era," Energy Policy, Elsevier, vol. 149(C).
    24. Zhang, Yu & Song, Junghyun & Hamori, Shigeyuki, 2011. "Impact of subsidy policies on diffusion of photovoltaic power generation," Energy Policy, Elsevier, vol. 39(4), pages 1958-1964, April.
    25. Qureshi, Tahir Masood & Ullah, Kafait & Arentsen, Maarten J., 2017. "Factors responsible for solar PV adoption at household level: A case of Lahore, Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 754-763.
    26. Hongyun Si & Jian-gang Shi & Daizhong Tang & Shiping Wen & Wei Miao & Kaifeng Duan, 2019. "Application of the Theory of Planned Behavior in Environmental Science: A Comprehensive Bibliometric Analysis," IJERPH, MDPI, vol. 16(15), pages 1-26, August.
    27. Eid, Cherrelle & Reneses Guillén, Javier & Frías Marín, Pablo & Hakvoort, Rudi, 2014. "The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives," Energy Policy, Elsevier, vol. 75(C), pages 244-254.
    28. Wang, Xiaozhen & Zheng, Ying & Jiang, Zihao & Tao, Ziyang, 2021. "Influence mechanism of subsidy policy on household photovoltaic purchase intention under an urban-rural divide in China," Energy, Elsevier, vol. 220(C).
    29. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    30. Kubli, Merla & Loock, Moritz & Wüstenhagen, Rolf, 2018. "The flexible prosumer: Measuring the willingness to co-create distributed flexibility," Energy Policy, Elsevier, vol. 114(C), pages 540-548.
    31. Wang, Shanyong & Wang, Jing & Lin, Shoufu & Li, Jun, 2019. "Public perceptions and acceptance of nuclear energy in China: The role of public knowledge, perceived benefit, perceived risk and public engagement," Energy Policy, Elsevier, vol. 126(C), pages 352-360.
    32. Liu, Diyi & Du, Huibin & Southworth, Frank & Ma, Shoufeng, 2017. "The influence of social-psychological factors on the intention to choose low-carbon travel modes in Tianjin, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 42-53.
    33. Sekitou, Mai & Tanaka, Kenta & Managi, Shunsuke, 2018. "Household electricity demand after the introduction of solar photovoltaic systems," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 102-110.
    34. dos Santos, L.L.C. & Canha, L.N. & Bernardon, D.P., 2018. "Projection of the diffusion of photovoltaic systems in residential low voltage consumers," Renewable Energy, Elsevier, vol. 116(PA), pages 384-401.
    35. Dong, Changgui & Zhou, Runmin & Li, Jiaying, 2021. "Rushing for subsidies: The impact of feed-in tariffs on solar photovoltaic capacity development in China," Applied Energy, Elsevier, vol. 281(C).
    36. Ye, Rui-Ke & Gao, Zhuang-Fei & Fang, Kai & Liu, Kang-Li & Chen, Jia-Wei, 2021. "Moving from subsidy stimulation to endogenous development: A system dynamics analysis of China's NEVs in the post-subsidy era," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    37. Brown, Donal & Hall, Stephen & Davis, Mark E., 2019. "Prosumers in the post subsidy era: an exploration of new prosumer business models in the UK," Energy Policy, Elsevier, vol. 135(C).
    38. Korcaj, Liridon & Hahnel, Ulf J.J. & Spada, Hans, 2015. "Intentions to adopt photovoltaic systems depend on homeowners' expected personal gains and behavior of peers," Renewable Energy, Elsevier, vol. 75(C), pages 407-415.
    39. Bai, Yin & Liu, Yong, 2013. "An exploration of residents’ low-carbon awareness and behavior in Tianjin, China," Energy Policy, Elsevier, vol. 61(C), pages 1261-1270.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Assessment of Energy and Heat Consumption Trends and Forecasting in the Small Consumer Sector in Poland Based on Historical Data," Resources, MDPI, vol. 12(9), pages 1-33, September.
    2. Bożena Gajdzik & Magdalena Jaciow & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2023. "Energy Behaviors of Prosumers in Example of Polish Households," Energies, MDPI, vol. 16(7), pages 1-26, March.
    3. Izabela Jonek-Kowalska, 2023. "Motives for the Use of Photovoltaic Installations in Poland against the Background of the Share of Solar Energy in the Structure of Energy Resources in the Developing Economies of Central and Eastern ," Resources, MDPI, vol. 12(8), pages 1-25, July.
    4. Linghui Li & Chunyan Dai, 2024. "Internal and External Factors Influencing Rural Households’ Investment Intentions in Building Photovoltaic Integration Projects," Energies, MDPI, vol. 17(5), pages 1-20, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khuong, Phuong M. & Scheller, Fabian & McKenna, Russell & Keles, Dogan & Fichtner, Wolf, 2020. "Willingness to pay for residential PV: Reconciling gaps between acceptance and adoption," Working Paper Series in Production and Energy 46, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    2. Alipour, M. & Salim, H. & Stewart, Rodney A. & Sahin, Oz, 2020. "Predictors, taxonomy of predictors, and correlations of predictors with the decision behaviour of residential solar photovoltaics adoption: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    3. Arifa Tanveer & Shihong Zeng & Muhammad Irfan & Rui Peng, 2021. "Do Perceived Risk, Perception of Self-Efficacy, and Openness to Technology Matter for Solar PV Adoption? An Application of the Extended Theory of Planned Behavior," Energies, MDPI, vol. 14(16), pages 1-24, August.
    4. Bin Wang & Jionghua Li & Ao Sun & Yongming Wang & Dianting Wu, 2019. "Residents’ Green Purchasing Intentions in a Developing-Country Context: Integrating PLS-SEM and MGA Methods," Sustainability, MDPI, vol. 12(1), pages 1-21, December.
    5. Frondel, Manuel & Kaestner, Kathrin & Sommer, Stephan & Vance, Colin, 2022. "Photovoltaics and the solar rebound: Evidence for Germany," Ruhr Economic Papers 954, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Shali Wang & Jiaxi Wu & Yunan Peng & Jane Xu & Lisa Leinonen & Yuyu Wang & Zheng Meng, 2022. "Influence of Residential Photovoltaic Promotion Policy on Installation Intention in Typical Regions of China," Sustainability, MDPI, vol. 14(14), pages 1-30, July.
    7. Li, Bo & Ding, Junqi & Wang, Jieqiong & Zhang, Biao & Zhang, Lingxian, 2021. "Key factors affecting the adoption willingness, behavior, and willingness-behavior consistency of farmers regarding photovoltaic agriculture in China," Energy Policy, Elsevier, vol. 149(C).
    8. Frondel, Manuel & Kaestner, Kathrin & Sommer, Stephan & Vance, Colin, 2021. "Photovoltaics and the Solar Rebound: Evidence for Germany," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242356, Verein für Socialpolitik / German Economic Association.
    9. Brown, Marilyn A. & Kale, Snehal & Cha, Min-Kyeong & Chapman, Oliver, 2023. "Exploring the willingness of consumers to electrify their homes," Applied Energy, Elsevier, vol. 338(C).
    10. Wang, Chaofan & Wang, Yilan & Zhao, Yujia & Shuai, Jing & Shuai, Chuanmin & Cheng, Xin, 2023. "Cognition process and influencing factors of rural residents' adoption willingness for solar PV poverty alleviation projects: Evidence from a mixed methodology in rural China," Energy, Elsevier, vol. 271(C).
    11. Wichsinee Wibulpolprasert & Umnouy Ponsukcharoen & Siripha Junlakarn & Sopitsuda Tongsopit, 2021. "Preliminarily Screening Geographical Hotspots for New Rooftop PV Installation: A Case Study in Thailand," Energies, MDPI, vol. 14(11), pages 1-30, June.
    12. Felipe Moraes do Nascimento & Julio Cezar Mairesse Siluk & Fernando de Souza Savian & Taís Bisognin Garlet & José Renes Pinheiro & Carlos Ramos, 2020. "Factors for Measuring Photovoltaic Adoption from the Perspective of Operators," Sustainability, MDPI, vol. 12(8), pages 1-29, April.
    13. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    14. Nik Masdek Nik Rozana & Wong Kelly Kai Seng & Mohd Nawi Nolila & Sharifuddin Juwaidah & Wong Wang Li, 2023. "Antecedents of sustainable food waste management behaviour: Empirical evidence from urban households in Malaysia," Management & Marketing, Sciendo, vol. 18(1), pages 53-77, March.
    15. Thipnapa Huansuriya & Kris Ariyabuddhiphongs, 2023. "Predicting Residential Photovoltaic Adoption Intention of Potential Prosumers in Thailand: A Theory of Planned Behavior Model," Energies, MDPI, vol. 16(17), pages 1-20, August.
    16. Adu-Gyamfi, Gibbson & Song, Huaming & Nketiah, Emmanuel & Obuobi, Bright & Adjei, Mavis & Cudjoe, Dan, 2022. "Determinants of adoption intention of battery swap technology for electric vehicles," Energy, Elsevier, vol. 251(C).
    17. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Prosumer integration into the Brazilian energy sector: An overview of innovative business models and regulatory challenges," Energy Policy, Elsevier, vol. 161(C).
    18. Collier, Samuel H.C. & House, Jo I. & Connor, Peter M. & Harris, Richard, 2023. "Distributed local energy: Assessing the determinants of domestic-scale solar photovoltaic uptake at the local level across England and Wales," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    19. Bashiri, Ali & Alizadeh, Sasan H., 2018. "The analysis of demographics, environmental and knowledge factors affecting prospective residential PV system adoption: A study in Tehran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3131-3139.
    20. Shankar, Amit & Dhir, Amandeep & Talwar, Shalini & Islam, Nazrul & Sharma, Piyush, 2022. "Balancing food waste and sustainability goals in online food delivery: Towards a comprehensive conceptual framework," Technovation, Elsevier, vol. 117(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:174:y:2023:i:c:s0301421523000368. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.