The diffusion of microgeneration technologies - assessing the influence of perceived product characteristics on home owners' willingness to pay
This study presents empirical insight into willingness to pay (WTP) for microgeneration technologies and the relative influence of subjective consumer perceptions. First, we apply a double-bounded contingent valuation method to elicit Irish home owners' WTP for micro wind turbines, wood pellet boilers, solar panels and solar water heaters. Utilizing findings from the adoption of innovation literature, in a second step we assess the influence of antecedents on WTP for each of the four technologies, including (1) home owners' perception of product characteristics, (2) normative influences and (3) sociodemographic characteristics. Our results show that WTP varies significantly among the four technologies. More importantly, however, home owners hold different beliefs about the respective technologies, which significantly influence their WTP. The results provide valuable information for marketers and policy makers aiming to promote microgeneration technologies more effectively in consumer markets.
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