INCENTIVES FOR GREEN CONSUMERS ON THE LIBERALISED ENERGY MARKET OF ROMANIA IN THE CONTEXT OF THE TRANSITION TO GREEN ECONOMY

Ana Șerbănescu

doi:10.32479/ijeep.11720

Abstract

The liberalisation process of energy markets has been progressing since 1990 and starting 2012 it has also begun in Romania, being finalised in January 2021 and granting the household consumers the possibility to choose an energy supply company. Together with the context of an ongoing transition towards a green economy, it is important to analyse and understand the criteria of consumers when choosing their energy supplier in order to design appropriate policies which will ensure the success and efficiency of the transition. This research targets the household consumers of Romania and the methodology consists of a questionnaire, whereas the data gathered was analysed using SPSS. The first hypothesis, of a correlation between the income of the consumer and the willingness to pay additionally for renewable energy, was not validated. Therefore, an increased standard of living does not translate to the willingness of consumers to invest in green energy. However, the second hypothesis, of an association between the level of education and the criteria of the consumers when they choose an energy supplier, was validated, indicating that the incentive in changing the criteria of consumers is to work together for the green economy transition and to develop a stronger educational background.Keywords: household consumers, greeen economy, energy market, liberalisation, consumer behaviour, education levelJEL Classifications: A19, P18, O44DOI: https://doi.org/10.32479/ijeep.11720

Highlights

Starting with 1990, the liberalisation of energy markets has been progressing among OECD countries
The present paper addresses the above mentioned partnership that is being discussed at international and regional decision-making levels, through the perspective that it lacks one of the key global players whose role is fundamental in the energy transition and which can be decisive in the successful transition to a green economy: the population of private consumers
Spearman’s Rank Correlation Between the Monthly Average Income and the Willingness of the Respondents to Pay a Higher Price on the Energy Bill for Green Energy According to the research performed, the most important criteria when choosing an energy supplier is represented by the lowest price (38%), followed by the relationship with the supplier (19%) and the trustworthiness and the reputation of the supplier (18%)

Summary

Introduction

Starting with 1990, the liberalisation of energy markets has been progressing among OECD countries. The goal for a liberalised market was to increase commercial competition which in terms would lead to higher efficiency and lower consumer prices (Meyer, 1998). The consumer should be studied and understood in order to insure a successful liberalisation of the energy market (Jegen and Wüstenhagen, 2001; Owen, 2014). In January 2007, Romania became member of the European Union and five years later, starting 2012, the liberalisation of the energy market began, only to be completed in January 2021, granting the household consumers the possibility to negotiate the price with a list of over 50 energy supply companies (Pricopie, 2014; Haar and Marinescu, 2011)

Objectives

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Discussion

Conclusion