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Profiling potential green electricity tariff adopters: green consumerism as an environmental policy tool?

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  • Ivan Diaz‐Rainey
  • John K. Ashton

Abstract

Green electricity tariffs are one means by which green consumers can contribute to a more sustainable future. This paper profiles potential adopters of green electricity tariffs. Potential adoption is measured in terms of respondents' willingness to pay a premium for green energy in a national survey of the UK population. Hypotheses based principally on the cognitive–behavioural literature on green consumerism and green energy markets are developed. These are tested using a broad range of variables, which are grouped into three categories (demographic, attitudinal and behavioural). Consistent with past research, the empirical analyses find that attitudinal variables best characterize potential adopters. Further, potential adopters are found to have higher income, be better informed with respect to energy matters, show concern for the environment and believe that individual actions can make a difference to environmental decay. The implications of these findings for marketing and environmental policy are explored. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Ivan Diaz‐Rainey & John K. Ashton, 2011. "Profiling potential green electricity tariff adopters: green consumerism as an environmental policy tool?," Business Strategy and the Environment, Wiley Blackwell, vol. 20(7), pages 456-470, November.
  • Handle: RePEc:bla:bstrat:v:20:y:2011:i:7:p:456-470
    DOI: 10.1002/bse.699
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    2. Ismi Rajiani & Sebastian Kot, 2018. "The Prospective Consumers of the Indonesian Green Aviation Initiative for Sustainable Development in Air Transportation," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-16, May.
    3. Anna Kowalska-Pyzalska & David Ramsey, 2018. "Household willingness to pay for green electricity in Poland," HSC Research Reports HSC/18/04, Hugo Steinhaus Center, Wroclaw University of Technology.
    4. Anna Kowalska-Pyzalska, 2019. "Do Consumers Want to Pay for Green Electricity? A Case Study from Poland," Sustainability, MDPI, Open Access Journal, vol. 11(5), pages 1-20, March.
    5. Herrmann, Johannes & Savin, Ivan, 2015. "Evolution of the electricity market in Germany: Identifying policy implications by an agent-based model," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112959, Verein für Socialpolitik / German Economic Association.
    6. Herrmann, J.K. & Savin, I., 2017. "Optimal policy identification: Insights from the German electricity market," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 71-90.
    7. Yujie Li, Xiaoyi Mu,Anita Schiller, and Baowei Zheng, 2016. "Willingness to Pay for Climate Change Mitigation: Evidence from China," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    8. Ivan Diaz-Rainey & Dionisia Tzavara, 2011. "Financing Renewable Energy through Household Adoption of Green Electricity Tariffs: A Diffusion Model of an Induced Environmental Market," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2011-03, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    9. Anna Kowalska-Pyzalska, 2018. "An empirical analysis of green energy adoption among residential consumers in Poland," HSC Research Reports HSC/18/01, Hugo Steinhaus Center, Wroclaw University of Technology.
    10. Gieri Hinnen & Stefanie Lena Hille & Andreas Wittmer, 2017. "Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 197-208, February.
    11. Elisha Temminck & Kathryn Mearns & Laura Fruhen, 2015. "Motivating Employees towards Sustainable Behaviour," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 402-412, September.
    12. Ha Junsheng & Muhammad Mehedi Masud & Rulia Akhtar & Md. Sohel Rana, 2020. "The Mediating Role of Employees’ Green Motivation between Exploratory Factors and Green Behaviour in the Malaysian Food Industry," Sustainability, MDPI, Open Access Journal, vol. 12(2), pages 1-18, January.
    13. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    14. Edyta Ropuszynska-Surma & Magdalena Weglarz & Janusz Szwabinski, 2018. "Energy prosumers: profiling the energy microgeneration market in Lower Silesia, Poland," Operations Research and Decisions, Wroclaw University of Technology, Institute of Organization and Management, vol. 1, pages 75-94.
    15. Anna Kowalska-Pyzalska, 2018. "An Empirical Analysis of Green Electricity Adoption Among Residential Consumers in Poland," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-17, July.

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