Determining the Influencing Factors in the Adoption of Solar Photovoltaic Technology in Pakistan: A Decomposed Technology Acceptance Model Approach

Saqib Ali,Ahsan Akbar,Petra Poulova,Muhammad Danish,Hafiz Muhammad Usama Javed

doi:10.3390/economies8040108

Abstract

Accelerating demand for energy and its consumption has become a credible threat to the sustainable ecosystem due to the exploitation of scarce natural resources and environmental hazards. The adoption of renewable energy sources for sustainable development has been gaining traction among researchers and practitioners alike. Considering its hot climate, Pakistan has a huge potential to meet its energy requirements by tapping into renewable energy resources, especially through the use of solar photovoltaic (SPV) technologies. However, the adoption rate of this technology remains still quite scant among consumers. In this regard, the present research explores the factors that affect households’ purchase intention of SPV technology in Pakistan. The study has developed a comprehensive research framework by decomposing the technology acceptance model (DTAM) into second-order sub-constructs. Afterward, Structural equation modeling (SEM) was employed to analyze the data by decomposing perceived usefulness (PU) into social, economic, and environmental usefulness and perceived ease of use (PEOU) into discomfort and insecurity and to assess their cumulative effects on consumer attitude. Moreover, the moderating role of policy and propaganda was also investigated. Empirical results assert that PU and PEOU positively and significantly shape the consumer attitude toward SPV adoption. Subsequently, consumer attitude has a positive and significant impact on the actual purchase intention of SPV technology. Furthermore, the moderating role of governmental policy and propaganda between the consumer attitude and actual purchase intention was also confirmed. The policy implications of these results are discussed. Finally, the limitations and future directions of the research are also elaborated.

Highlights

Escalating energy demand and increased consumption over the past few decades imply that sustainable energy production for environmental preservation will remain one of the significantEconomies 2020, 8, 108; doi:10.3390/economies8040108 www.mdpi.com/journal/economiesEconomies 2020, 8, x FOR PEER REVIEW challenges, especially for the developing world (Akbar et al 2020a)
The results suggest that consumer attitude is a significant factor in the purchase intention to use solar PV technology in Pakistan
Increasing the proportion of renewable energy is the overall energy mix is an essential feature for the sustainable development of an economy

Summary

Introduction

Escalating energy demand and increased consumption over the past few decades imply that sustainable energy production for environmental preservation will remain one of the significantEconomies 2020, 8, 108; doi:10.3390/economies8040108 www.mdpi.com/journal/economiesEconomies 2020, 8, x FOR PEER REVIEW challenges, especially for the developing world (Akbar et al 2020a). Escalating energy demand and increased consumption over the past few decades imply that sustainable energy production for environmental preservation will remain one of the significant. Economies 2020, 8, x FOR PEER REVIEW challenges, especially for the developing world (Akbar et al 2020a). Energy plays a pivotal role in fueling growth and economic development countries. A country cannot flourish without fueling thethe growth and economic development of of countries. Flourish without an an appropriate portfolio of energy resources. Electricity is considered a critical component of the appropriate portfolio of energy resources. Electricity is considered a critical component of the country’s al.

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