Norms and economic motivation in the Swedish green electricity market
The purpose of this paper is to provide an econometric analysis of the most important determinants of Swedish households' choice to pay a price premium for "green" electricity. We draw on recent developments in the literature on integrating norm-motivated behavior into neoclassical consumer theory, and assume that individuals have a preference for keeping a self-image as a morally responsible person. Consumer behavior in the "green market place" will then be heavily determined by how purchases of different goods affect this self-image. The analysis is based on postal survey responses from 655 Swedish households, which are analyzed within a binary choice econometric framework. The results indicate that the impact of choosing "green" on the household budget largely influences the choice between "green" and "brown" electricity, as does the degree of perceived personal responsibility for the issue and the felt ability to affect the outcome in a positive way. We find limited support for the notion that perceptions about others' behavior in general affect individual moral norms and ultimately expressed behavior, but this is also complemented by the influence of explicit social influence. The difficulty in observing others' purchases makes it however difficult to distinguish between social and moral norms in the case of "green" electricity.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002.
"Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan,"
Vanderbilt University Department of Economics Working Papers
0203, Vanderbilt University Department of Economics.
- Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
- Ernst Fehr & Armin Falk, 2002.
"Psychological Foundations of Incentives,"
CESifo Working Paper Series
714, CESifo Group Munich.
- Fehr, Ernst & Falk, Armin, 2002. "Psychological Foundations of Incentives," IZA Discussion Papers 507, Institute for the Study of Labor (IZA).
- Ernst Fehr, 2003. "Psychological Foundations of Incentives," Microeconomics 0305010, EconWPA.
- Falk, Armin & Fehr, Ernst, 2002. "Psychological Foundations of Incentives," CEPR Discussion Papers 3185, C.E.P.R. Discussion Papers.
- Ernst Fehr & Armin Falk, . "Psychological Foundations of Incentives," IEW - Working Papers 095, Institute for Empirical Research in Economics - University of Zurich.
- Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
- Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
- Rose, Steven K. & Clark, Jeremy & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D., 1999.
"The Private Provision of Public Goods: Tests of a Provision Point Mechanism for Funding Green Power Programs,"
127699, Cornell University, Department of Applied Economics and Management.
- Rose, Steven K. & Clark, Jeremy & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D., 2002. "The private provision of public goods: tests of a provision point mechanism for funding green power programs," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 131-155, February.
- Rose, Steven K. & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D. & Clark, Jeremy, 1997. "The Private Provision of Public Goods: Tests of a Provision Point Mechanism for Funding Green Power Programs," Working Papers 127850, Cornell University, Department of Applied Economics and Management.
- Eikeland, Per Ove, 1998. "Electricity market liberalisation and environmental performance: Norway and the UK," Energy Policy, Elsevier, vol. 26(12), pages 917-927, October.
- Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
- Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
- Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2006.
"Green consumers and public policy: On socially contingent moral motivation,"
Resource and Energy Economics,
Elsevier, vol. 28(4), pages 351-366, November.
- Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2003. "Green consumers and public policy: On socially contingent moral motivation," Memorandum 31/2003, Oslo University, Department of Economics.
- Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
- Kjell Arne Brekke & Snorre Kverndokk & Karinen Nyborg, 2000.
"An Economic Model of Moral Motivation,"
290, Statistics Norway, Research Department.
- Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Kotchen, Matthew J. & Moore, Michael R., 2007.
"Private provision of environmental public goods: Household participation in green-electricity programs,"
Journal of Environmental Economics and Management,
Elsevier, vol. 53(1), pages 1-16, January.
- Matthew J. Kotchen & Michael R. Moore, 2004. "Private Provision of Environmental Public Goods: Household Participation in Green-Electricity Programs," Department of Economics Working Papers 2004-07, Department of Economics, Williams College.
- Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-28.
- Kotchen, Matthew J. & Reiling, Stephen D., 2000. "Environmental attitudes, motivations, and contingent valuation of nonuse values: a case study involving endangered species," Ecological Economics, Elsevier, vol. 32(1), pages 93-107, January.
- Cooper, Philip & Poe, Gregory L. & Bateman, Ian J., 2004. "The structure of motivation for contingent values: a case study of lake water quality improvement," Ecological Economics, Elsevier, vol. 50(1-2), pages 69-82, September.
- Roland Menges & Carsten Schroeder & Stefan Traub, 2005. "Altruism, Warm Glow and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(4), pages 431-458, 08.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:68:y:2008:i:1-2:p:169-182. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.