IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i7p1615-d340224.html
   My bibliography  Save this article

Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package

Author

Listed:
  • Florian Hanke

    (Faculty of Business Administration and Economics, European University Viadrina, 15230 Frankfurt, Germany)

  • Jens Lowitzsch

    (Faculty of Business Administration and Economics, European University Viadrina, 15230 Frankfurt, Germany)

Abstract

The unequal distribution of costs and benefits of the energy transition is a challenge for energy justice and energy policy. Although the empowerment of consumers to participate in renewable energy communities (RECs) has great potential for a just energy transition, vulnerable consumers remain underrepresented in RE projects. The recast of the European renewable energy directive obliges the European Member States to facilitate the participation of vulnerable consumers and support their inclusion in its “ enabling framework ” for prosumership. However, the type and specific design of corresponding measures remains unclear. Against this background this article investigates consumer empowerment in a vulnerability context. In particular we stress the need to understand how vulnerability affects participation in RECs to inform both policy makers and practitioners on its specificities and restrictions for the “ enabling framework ”. To prevent the inclusion of vulnerable consumers in RECs from remaining an idea on paper lawmakers need to be made aware of the implications for a consistent “ enabling framework ”. We argue that both individual vulnerable consumers as well as RECs need incentives and support to boost RECs’ capacity to include groups that until now remain underrepresented.

Suggested Citation

  • Florian Hanke & Jens Lowitzsch, 2020. "Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package," Energies, MDPI, vol. 13(7), pages 1-27, April.
  • Handle: RePEc:gam:jeners:v:13:y:2020:i:7:p:1615-:d:340224
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/7/1615/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/13/7/1615/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jens Ludwig & Greg J. Duncan & Lisa A. Gennetian & Lawrence F. Katz & Ronald C. Kessler & Jeffrey R. Kling & Lisa Sanbonmatsu, 2013. "Long-Term Neighborhood Effects on Low-Income Families: Evidence from Moving to Opportunity," American Economic Review, American Economic Association, vol. 103(3), pages 226-231, May.
    2. Frank Schilbach & Heather Schofield & Sendhil Mullainathan, 2016. "The Psychological Lives of the Poor," American Economic Review, American Economic Association, vol. 106(5), pages 435-440, May.
    3. Middlemiss, Lucie & Parrish, Bradley D., 2010. "Building capacity for low-carbon communities: The role of grassroots initiatives," Energy Policy, Elsevier, vol. 38(12), pages 7559-7566, December.
    4. Polzin, Friedemann & Migendt, Michael & Täube, Florian A. & von Flotow, Paschen, 2015. "Public policy influence on renewable energy investments—A panel data study across OECD countries," Energy Policy, Elsevier, vol. 80(C), pages 98-111.
    5. Thaler, Richard, 1981. "Some empirical evidence on dynamic inconsistency," Economics Letters, Elsevier, vol. 8(3), pages 201-207.
    6. Maria Ioannidou, 2018. "Effective Paths for Consumer Empowerment and Protection in Retail Energy Markets," Journal of Consumer Policy, Springer, vol. 41(2), pages 135-157, June.
    7. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    8. Bauwens, Thomas, 2016. "Explaining the diversity of motivations behind community renewable energy," Energy Policy, Elsevier, vol. 93(C), pages 278-290.
    9. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    10. Ed Diener & Robert Biswas-Diener, 2002. "Will Money Increase Subjective Well-Being?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 57(2), pages 119-169, February.
    11. Robert J Shiller, 2013. "Finance Contributing to the Good Society," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 48(1), pages 77-80, February.
    12. Gabriela Michalek & Georg Meran & Reimund Schwarze & Özgür Yildiz, 2015. "Nudging as a new 'soft' tool in environmental policy. An analysis based on insights from cognitive and social psychology," Discussion Paper Series RECAP15 21, RECAP15, European University Viadrina, Frankfurt (Oder).
    13. Markus M. Grabka & Christoph Halbmeier, 2019. "Vermögensungleichheit in Deutschland bleibt trotz deutlich steigender Nettovermögen anhaltend hoch," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 86(40), pages 735-745.
    14. Robert J. Shiller, 2013. "Reflections on Finance and the Good Society," American Economic Review, American Economic Association, vol. 103(3), pages 402-405, May.
    15. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    16. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
    17. Walker, Gordon & Devine-Wright, Patrick & Hunter, Sue & High, Helen & Evans, Bob, 2010. "Trust and community: Exploring the meanings, contexts and dynamics of community renewable energy," Energy Policy, Elsevier, vol. 38(6), pages 2655-2663, June.
    18. Bertrand, Marianne & Shafir, Eldar & Mullainathan, Sendhil, 2006. "Behavioral Economics and Marketing in Aid of Decision Making Among the Poor," Scholarly Articles 2962609, Harvard University Department of Economics.
    19. Yates, J. Frank & de Oliveira, Stephanie, 2016. "Culture and decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 106-118.
    20. repec:zbw:rwirep:0542 is not listed on IDEAS
    21. Parag, Yael & Hamilton, Jo & White, Vicki & Hogan, Bernie, 2013. "Network approach for local and community governance of energy: The case of Oxfordshire," Energy Policy, Elsevier, vol. 62(C), pages 1064-1077.
    22. Johnston Birchall, 2013. "The potential of co-operatives during the current recession; theorizing comparative advantage," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 1-22, May.
    23. Anderson, Will & White, Vicki & Finney, Andrea, 2012. "Coping with low incomes and cold homes," Energy Policy, Elsevier, vol. 49(C), pages 40-52.
    24. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    25. Richard H. Thaler & Cass R. Sunstein, 2023. "Libertarian paternalism," Chapters, in: Cass R. Sunstein & Lucia A. Reisch (ed.), Research Handbook on Nudges and Society, chapter 1, pages 10-16, Edward Elgar Publishing.
    26. Aguirre, Mariana & Ibikunle, Gbenga, 2014. "Determinants of renewable energy growth: A global sample analysis," Energy Policy, Elsevier, vol. 69(C), pages 374-384.
    27. Walker, Gordon, 2008. "What are the barriers and incentives for community-owned means of energy production and use?," Energy Policy, Elsevier, vol. 36(12), pages 4401-4405, December.
    28. Jan Trzaskowski, 2011. "Behavioural Economics, Neuroscience, and the Unfair Commercial Practises Directive," Journal of Consumer Policy, Springer, vol. 34(3), pages 377-392, September.
    29. Lanka Horstink & Julia M. Wittmayer & Kiat Ng & Guilherme Pontes Luz & Esther Marín-González & Swantje Gährs & Inês Campos & Lars Holstenkamp & Sem Oxenaar & Donal Brown, 2020. "Collective Renewable Energy Prosumers and the Promises of the Energy Union: Taking Stock," Energies, MDPI, vol. 13(2), pages 1-30, January.
    30. Spears Dean, 2011. "Economic Decision-Making in Poverty Depletes Behavioral Control," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-44, December.
    31. Manuel Frondel & Stephan Sommer & Colin Vance, 2015. "The burden of Germanyùs energy transition: An empirical analysis of distributional effects," Economic Analysis and Policy, Elsevier, vol. 45(c), pages 89-99.
    32. Marques, António Cardoso & Fuinhas, José Alberto, 2012. "Are public policies towards renewables successful? Evidence from European countries," Renewable Energy, Elsevier, vol. 44(C), pages 109-118.
    33. Peter Heindl & Rudolf Schüßler & Andreas Löschel, 2014. "Ist die Energiewende sozial gerecht?," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(7), pages 508-514, July.
    34. Benjamin K. Sovacool & Raphael J. Heffron & Darren McCauley & Andreas Goldthau, 2016. "Energy decisions reframed as justice and ethical concerns," Nature Energy, Nature, vol. 1(5), pages 1-6, May.
    35. Rogers, J.C. & Simmons, E.A. & Convery, I. & Weatherall, A., 2008. "Public perceptions of opportunities for community-based renewable energy projects," Energy Policy, Elsevier, vol. 36(11), pages 4217-4226, November.
    36. Uri Benzion & Amnon Rapoport & Joseph Yagil, 1989. "Discount Rates Inferred from Decisions: An Experimental Study," Management Science, INFORMS, vol. 35(3), pages 270-284, March.
    37. Danielle F. Lawson & Kathryn T. Stevenson & M. Nils Peterson & Sarah J. Carrier & Renee L. Strnad & Erin Seekamp, 2019. "Children can foster climate change concern among their parents," Nature Climate Change, Nature, vol. 9(6), pages 458-462, June.
    38. Brummer, Vasco, 2018. "Community energy – benefits and barriers: A comparative literature review of Community Energy in the UK, Germany and the USA, the benefits it provides for society and the barriers it faces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 187-196.
    Full references (including those not matched with items on IDEAS)

    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. Dalia Streimikiene & Tomas Baležentis & Artiom Volkov & Mangirdas Morkūnas & Agnė Žičkienė & Justas Streimikis, 2021. "Barriers and Drivers of Renewable Energy Penetration in Rural Areas," Energies, MDPI, vol. 14(20), pages 1-28, October.
    2. Curtin, Joseph & McInerney, Celine & Ó Gallachóir, Brian, 2017. "Financial incentives to mobilise local citizens as investors in low-carbon technologies: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 534-547.
    3. Berka, Anna L. & Creamer, Emily, 2018. "Taking stock of the local impacts of community owned renewable energy: A review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3400-3419.
    4. Brummer, Vasco, 2018. "Community energy – benefits and barriers: A comparative literature review of Community Energy in the UK, Germany and the USA, the benefits it provides for society and the barriers it faces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 187-196.
    5. Eduard Marinov, 2017. "The 2017 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 117-159.
    6. Committee, Nobel Prize, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    7. Joseph Curtin & Celine McInerney & Lara Johannsdottir, 2018. "How can financial incentives promote local ownership of onshore wind and solar projects? Case study evidence from Germany, Denmark, the UK and Ontario," Local Economy, London South Bank University, vol. 33(1), pages 40-62, February.
    8. Mina Ličen & Sergeja Slapničar, 2022. "Can process accountability mitigate myopic biases? An experimental analysis," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(1), pages 1-26, March.
    9. Beau Warbroek & Thomas Hoppe & Frans Coenen & Hans Bressers, 2018. "The Role of Intermediaries in Supporting Local Low-Carbon Energy Initiatives," Sustainability, MDPI, vol. 10(7), pages 1-28, July.
    10. Bauwens, Thomas, 2019. "Analyzing the determinants of the size of investments by community renewable energy members: Findings and policy implications from Flanders," Energy Policy, Elsevier, vol. 129(C), pages 841-852.
    11. Klein, Sharon J.W. & Coffey, Stephanie, 2016. "Building a sustainable energy future, one community at a time," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 867-880.
    12. Degirmenci, Tunahan & Yavuz, Hakan, 2024. "Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?," Energy, Elsevier, vol. 299(C).
    13. Fouladvand, Javanshir & Aranguren Rojas, Maria & Hoppe, Thomas & Ghorbani, Amineh, 2022. "Simulating thermal energy community formation: Institutional enablers outplaying technological choice," Applied Energy, Elsevier, vol. 306(PA).
    14. Salm, Sarah & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2016. "What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany," Energy Policy, Elsevier, vol. 97(C), pages 310-320.
    15. Lode, M.L. & te Boveldt, G. & Coosemans, T. & Ramirez Camargo, L., 2022. "A transition perspective on Energy Communities: A systematic literature review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).
    16. Lanka Horstink & Julia M. Wittmayer & Kiat Ng & Guilherme Pontes Luz & Esther Marín-González & Swantje Gährs & Inês Campos & Lars Holstenkamp & Sem Oxenaar & Donal Brown, 2020. "Collective Renewable Energy Prosumers and the Promises of the Energy Union: Taking Stock," Energies, MDPI, vol. 13(2), pages 1-30, January.
    17. Moritz Ehrtmann & Lars Holstenkamp & Timon Becker, 2021. "Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    18. Busch, Henner & Ruggiero, Salvatore & Isakovic, Aljosa & Hansen, Teis, 2021. "Policy challenges to community energy in the EU: A systematic review of the scientific literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    19. Michael G. Pollitt & Irina Shaorshadze, 2013. "The role of behavioural economics in energy and climate policy," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 24, pages 523-546, Edward Elgar Publishing.
    20. Andrea Roncella & Ignacio Ferrero, 2022. "The Ethics of Financial Market Making and Its Implications for High-Frequency Trading," Journal of Business Ethics, Springer, vol. 181(1), pages 139-151, November.

    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:gam:jeners:v:13:y:2020:i:7:p:1615-:d:340224. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.