Abstract
BackgroundIn order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by switching to green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers would hypothetically decide to switch to a green electricity tariff.MethodsA quota-representative online survey including a discrete choice experiment with 371 German private households was conducted in 2016. For the econometric analysis, a generalized multinomial logit model in willingness-to-pay space was employed, enabling the estimation of WTP values to be as realistic as possible.ResultsThe results show that consumers’ decision whether or not to make the switch to green energy is mainly influenced by the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exist in Germany.ConclusionsThe findings indicate that politics should focus on supporting wind and solar energy as German consumers prefer these sources over biogas. As the results suggest, the EEG levy is a reason why consumers have lower WTP for switching to a green tariff. Therefore, a switching bonus with a specifically “framed” bonus in the amount of the current EEG levy could be a promising strategy for the increase of green energy tariff acceptance. Furthermore, attention should be given to psychological and behavioral aspects, as the results indicate that these factors influence the consumer’s choice for a green electricity tariff.
Highlights
In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society
The results showed that compared to the north, the south has the significantly lowest willingness to pay (WTP) for switching to green electricity (ASC × region: south: − 1.139 Euro kilowatt hours (kWh)−1), whereas households in the east or west would pay significantly more than households in the north for switching to green electricity (ASC × region: east: 0.502 Eurocent kWh−1, alternative-specific constant (ASC) × region: west: 0.671 Euro kWh−1)
This paper presents the results of a quota-representative discrete choice experiment with 371 German electricity consumers conducted to elicit factors that are important for consumers when deciding whether or not to switch to green electricity
Summary
In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by switching to green electricity. This study explores parameters that influence whether German consumers would hypothetically decide to switch to a green electricity tariff. Danne et al Energ Sustain Soc (2021) 11:15 greenhouse gas emitter in Europe and is a country with even more ambitious climate protection goals than other EU countries [8, 9]. In addition to political interests that are involved in the promotion of renewable energies, there is an increasing demand among consumers. Numerous studies show that consumers have an additional willingness to pay (WTP) for electricity from RES [13,14,15,16,17,18,19,20,21] and that RES should be supported [22]. A meta-analysis found that German consumers have one of the highest WTPs for green electricity compared to consumers of other countries [21]
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