Background
In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by purchasing green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers decide to switch to a green electricity tariff.
Methods
We conducted a quota-representative online survey including a discrete choice experiment with 371 private households in Germany in 2016. For the econometric analysis, a generalized multinomial logit model in willingness to pay space was employed, enabling the estimation of WTP values to be as realistic as possible.
Results
The results show that consumers’ decision regarding whether or not to make the switch to green energy is mainly influenced by the source of green energy, whether a person can outsource the switching process, and a person’s attitude towards the renewable energy sources levy that currently exists in Germany.
Conclusions
As our findings indicate politics should focus on supporting wind and solar energy as German consumers prefer this sources over biogas. As suggested by our results, the EEG levy is a reason why consumers have lower WTP for a switch to a green tariff. Therefore a switching bonus with a specifically “framed” bonus in the amount of the current EEG levy could be a promising strategy for the increase of green energy tariff acceptance. Furthermore, attention should be given to psychological and behavioral aspects, as our results indicate that these factors influence the consumer’s choice for a green electricity tariff.