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Individualism and the adoption of clean energy technology

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  • Ang, James B.
  • Fredriksson, Per G.
  • Sharma, Swati

Abstract

Why do 20% of Swedes report having adopted a clean energy system while the corresponding share of Spaniards equals 0.4%? Using data for about 25,000 individuals across 33 countries, this study tests which cultural trait, individualism or collectivism, is associated with greater levels of clean technology adoption. Our fractional probit estimates suggest that individualistic individuals are more inclined to adopt clean energy systems for home and transport purposes. In particular, the adoption probability rises by an estimated 2% if a person exhibits individualistic values. This finding is not driven by country-specific tax or subsidy policies or market-specific determinants and is robust to controlling for individual and household characteristics, attitudes, social and personal norms and other significant dimensions of cultural differences. The results, therefore, facilitate an understanding of how the decision to adopt clean energy technologies can be driven by cultural factors.

Suggested Citation

  • Ang, James B. & Fredriksson, Per G. & Sharma, Swati, 2020. "Individualism and the adoption of clean energy technology," Resource and Energy Economics, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:resene:v:61:y:2020:i:c:s0928765519304063
    DOI: 10.1016/j.reseneeco.2020.101180
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    3. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    4. Mohanty, Aatishya & Sharma, Swati, 2022. "COVID-19 regulations, culture, and the environment," Economic Modelling, Elsevier, vol. 113(C).
    5. Jayasekara, Dinithi N. & Fredriksson, Per G., 2021. "Culture, intellectual property rights, and technology adoption," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 317-330.
    6. Chapman, Andrew & Shigetomi, Yosuke & Karmaker, Shamal Chandra & Saha, Bidyut & Brooks, Caleb, 2022. "Cultural and demographic energy system awareness and preference: Implications for future energy system design in the United States," Energy Economics, Elsevier, vol. 112(C).
    7. Li, Fangyi & Cao, Xin & Ou, Rui, 2021. "A network-based evolutionary analysis of the diffusion of cleaner energy substitution in enterprises: The roles of PEST factors," Energy Policy, Elsevier, vol. 156(C).
    8. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2022. "The dimension of green economy: Culture viewpoint," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 122-138.

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    More about this item

    Keywords

    Clean energy; Technology adoption; Culture; Individualism; Collectivism;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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