Identifying consumers' engagement with renewable energy

Abstract

AbstractA moral engagement with sustainability enhances consumers' willingness to pay an increased rate for renewable energy when utility firms offer a variety of financial incentives to buy, rent and lease energy solutions to promote the uptake of energy‐efficient technologies. Using structural equation modelling, with data collected from 140 residential energy consumers in Canada, this paper tests and finds evidence that consumers' moral disengagement with environmental concerns negatively influences their willingness to pay more for renewable energy. Furthermore, it is observed that a consumer's perceived sense of control when evaluating energy solutions further accentuates the effects of moral disengagement on willingness to pay. These findings also illuminate the socio‐economic factors that encourage moral engagement concerning renewables. These findings underscore and build upon the claims of the theory of moral self‐regulation. The results and implications guide energy suppliers in potential niche business models to promote the uptake of energy efficient technologies. Similarly, the findings can guide policy‐makers on the cognitive and psychological factors that shape consumers' moral engagement with environmental concerns.