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.

Andrea Tabi, Stefanie Heinzle, Rolf Wüstenhagen

20 Aug 2013