Consumer Choice towards Renewable Energy

Ahmed, N.A (2015) Consumer Choice towards Renewable Energy.

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Abstract:The Fukushima nuclear accident in March 2011 had a great impact on the European energy policy. The federal government in Germany decided to temporarily shut down the old generation of nuclear reactors and approved legislation on revamping Germany’s sweeping plan to generate more than 40 percent of its energy needs through renewable resources by 2025. Renewable energy is an energy source that is widely considered to have less of an ecological impact than a conventional energy source. Despite that there is a growing consensus that the green market is significant and that companies can profit by improving environmental performance and developing green products, not all green products are successful in garnering customer interest. Consumers' purchasing behavior is not necessarily greener than before and often, strongly expressed concerns for the environment are not reflected in consumption practices. Therefore, the aim of this study was to find out what factors influence the consumer choice towards renewable energy. A literature review provided several factors influencing consumer choice towards renewable energy. Further, an interview with a renewable energy provider has been conducted. The study found that the main factors relating to an adoption of renewable energy are energy cost reductions, energy supplier independency, increasing market price for energy, positive recommendations from people within the social network as well as financial support through grants. New factors found directing people towards a rejection are relating to the technological development and optic. The study concludes that renewable energy provides a lot of benefits, and should be adopted by many more people. Since many people still lack a lot of knowledge toward renewable energy, it is very important to increase the availability of information as well the knowledge towards renewable energy. Therefore, organizations promoting renewable energy need to get more active within their marketing work. Since a big factor influencing consumers towards their choices are still recommendations from people within their social network, organizations should put a lot of effort in satisfying existing customers, so that those go outside and further recommend them by others. In this way the market share for renewable energy can be increased.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67433
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