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Prosumer Preferences Regarding the Adoption of Micro‐Generation Technologies: Empirical Evidence for German Homeowners

Author

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  • Oberst, Christian

    () (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Madlener, Reinhard

    () (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

This paper investigates the preferences of homeowners in Germany regarding the adoption of renewable energy‐based micro‐generation technologies using data from a survey with a discrete choice experiment. In the German policy debate, private households, in their possible joint roles as electricity producers and consumers, are discussed as potential key actors for the transition of the energy system towards a decentralized energy market based on renewable energies. In our study, we address the relevance of investment and usage characteristics as well as the perceived importance of both private and social costs and benefits behind prosumer preferences for the adoption of generic electricity micro‐generation technologies. The empirical investigation is based on a conditional logit model. The results show the perceived usefulness of electricity self‐supply, indicating that the motivation for electricity "prosuming" is about more than just using green electricity and undertaking a profitable (energy) investment. Policy makers should not rely on the intrinsic motivation of households to contribute towards climate protection but instead take social effects more strongly into account in their policies which aim to foster the energy system transition (“Energiewende”). Further, both energy policies and business models should avoid the introduction of overly complex measures which might be too demanding on households.

Suggested Citation

  • Oberst, Christian & Madlener, Reinhard, 2015. "Prosumer Preferences Regarding the Adoption of Micro‐Generation Technologies: Empirical Evidence for German Homeowners," FCN Working Papers 22/2014, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  • Handle: RePEc:ris:fcnwpa:2014_022
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christiane Rosen and Reinhard Madlener, 2016. "Regulatory Options for Local Reserve Energy Markets: Implications for Prosumers, Utilities, and other Stakeholders," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    2. Markus Flaute & Anett Großmann & Christian Lutz & Anne Nieters, 2017. "Macroeconomic Effects of Prosumer Households in Germany," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 146-155.
    3. repec:eee:ecolec:v:158:y:2019:i:c:p:101-115 is not listed on IDEAS
    4. repec:gam:jeners:v:12:y:2019:i:8:p:1481-:d:224193 is not listed on IDEAS
    5. Oberst, Christian A. & Schmitz, Hendrik & Madlener, Reinhard, 2019. "Are Prosumer Households That Much Different? Evidence From Stated Residential Energy Consumption in Germany," Ecological Economics, Elsevier, vol. 158(C), pages 101-115.
    6. Specht, Jan Martin & Madlener, Reinhard, 2018. "Business Models for Energy Suppliers Aggregating Flexible Distributed Assets and Policy Issues Raised," FCN Working Papers 7/2018, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    7. repec:aen:eeepjl:eeep6-1-schill is not listed on IDEAS
    8. Wolf-Peter Schill, Alexander Zerrahn, and Friedrich Kunz, 2017. "Prosumage of solar electricity: pros, cons, and the system perspective," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    9. Hackbarth, André, 2018. "Attitudes, preferences, and intentions of German households concerning participation in peer-to-peer electricity trading," Reutlingen Working Papers on Marketing & Management 2019-2, Reutlingen University, ESB Business School.

    More about this item

    Keywords

    Prosumer; micro‐generation technologies; choice experiment; renewable energy; energy transition; policy;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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