Motivations and deterrents of Asian small and medium-sized enterprises’ willingness to adopt green electricity

Abstract

To reduce dependence towards non-renewable sources of energy, green electricity plans were introduced as an environmentally friendly alternative to conventional electricity plans. While perceived to be pricier, green electricity plans can be adopted by small and medium-sized enterprises. As such, this study aims to understand the motivations and deterrents for the willingness to adopt such plans by small and medium-sized enterprises in an Asian context, specifically in Singapore. The results revealed that respondents that indicated a higher score towards questions relating to sustainability awareness were more likely to be willing to adopt green electricity plans. In addition, tenants who exhibit a moderate expected retailer's dependence on renewable electricity were also more likely to be willing to adopt green electricity plans. When considering whether to switch to green electricity plans, these factors were listed in addition to the price of green electricity plans: (1) Environmental impact and firms' motivation to go green, (2) Quality of services provided by their electricity retailer, and (3) Ease of switching to a green electricity plans. Furthermore, pricing and trustworthiness/reliability of the retailer were listed as the top two factors that would motivate and deter firms from switching to another electricity retailer. The results from this study could inform electricity retailers and policy makers on the factors that contribute to small and medium-sized enterprises willingness to adopt green electricity plans in an Asian context.