Citizen versus consumer: challenges in the UK green power market

Abstract

This paper investigates the potential advantages and disadvantages of green power products, as opposed to the traditional fossil fuel levy (which was the UK's chosen tax regime), as a means of developing renewable energy in the UK. Willingness to pay for electricity generated from renewables is investigated. Results indicate that willingness to pay varies with social status and income. However results demonstrate that there is a significant minority in full support of some sort of fiscal initiative. Electricity generated from renewables is a concept supported by the majority. However, given the stated willingness to pay it is unlikely that any new renewable capacity will result from green tariff schemes in the near term. It is concluded that the green citizen must continue to co-exist with the green power purchaser if the UK is to make any significant improvement in the contribution of renewable energy to electricity demand. The authors would like to acknowledge the support of Irene Lorenzoni and Jane Powell of the Centre for Social and Economic Research on the Global Environment, University of East Anglia; Leicester Energy Efficiency Advice Centre; and Leicester Energy Agency.