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Preferences for green electricity and eco-labels: empirical results from a market segmentation analysis in Germany
Type
presentation
Date Issued
2013-08-20
Author(s)
Abstract
Consumers have the power to contribute to a more sustainable future by subscribing to green electricity tariffs. In order to reach consumers "beyond the eco-niche" and to develop targeted messaging, exploring the drivers that positively influence the adoption of green electricity is of fundamental importance. The research described in this paper examined various factors that help to explain the extent to which subscribers to green electricity tariffs ('Adopters') differ from potential adopters. By making use of a latent class segmentation analysis based on choice-based conjoint data the research identified three segments into which potential green electricity adopters can be classified. Findings indicate a marginal role for socio-demographic factors, although Adopters tend to be more highly educated than non-adopters. Additionally, psychographic features of Adopters tend to include a higher level of climate concern, greater expectations about consumer effectiveness and a tendency to envisage lower prices for future green tariffs. These findings highlight the importance of providing information to the customer about the value and benefits of green electricity. Policy recommendations associated with these findings are provided.
Language
English
Keywords
market segmentation
choice-based conjoint analysis
green electricity
latent class analysis
HSG Classification
contribution to scientific community
Refereed
No
Event Title
IAEE conference
Event Location
Düsseldorf
Subject(s)
Division(s)
Eprints ID
230215