Consumers and green electricity: profiling potential purchasers

Abstract

Globally, consumers are beginning to be able to choose their electricity supplier. Increasing concerns about the environment are prompting some of them to consider ‘green’ electricity—that is, electricity that has been generated by more environmentally sustainable means (for example, solar power or wind power). This article profiles the potential purchaser of green electricity. Drawing upon the literature on green product purchasers more generally, three sets of hypotheses are presented—more specifically, it is proposed that those who would pay increasingly higher premiums for green electricity are more likely to possess particular demographic characteristics, attitudinal characteristics and socialization characteristics. Responses from a survey distributed in a major Canadian metropolitan area are then examined. Attitudinal characteristics—specifically ecological concern, liberalism and altruism—best identify the potential purchasers of green electricity. Suggestions for managers and marketers are made following these findings. Directions for future research are also presented. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.

Individual strategies for sustainable consumption

“…Intentions towards sustainable consumption have been dealt with in these social science literatures in two main ways: They have been used as a proxy for action; and they have been examined in their own right. The studies which have used intentions as a proxy for actions include the many contributions to the marketing literature which, for example, asked consumers whether they would be prepared to pay a premium for green goods and services (Prothero 1990;Rowlands, Scott and Parker 2003) or take part in recycling schemes (Hopper and Nielsen 1991).…”

Comparing sustainable consumption patterns across product sectors

“…Since these are relatively new products, and are only offered in a few countries, there is a less established literature pertaining to consumption patterns for these products. However, there is a number of studies of consumers' 'willingness to pay' for green electricity in the United States (Farhar & Houston, 1996;Roe et al, 2001;Zarnikau, 2003), Canada (Rowlands, Scott & Parker, 2003) and the United Kingdom (PRASEG, 1996;Colbourne et al,1999;Batley et al, 2001). There is also a literature on green power marketing which is concerned with how best to promote greener electricity products to customers (Wiser, 1998).…”

Youth Perception towards Green Credential Advertisements in a Malaysian context

“…Another researches also showed that consumers who prefer to use green electricity tend to have a pro-environmental orientation, and are orientated towards altruistic values (Rowlands, Scott, & Parker, 2003). These findings imply that consumers who have altruistic value are more likely to patronize green manufacture.…”