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Determinants of the green electricity tariff uptake in the UK

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  • Lange, Ian
  • MacPherson, Ronnie

Abstract

A number of countries offer domestic consumers the option of buying their electricity supply through a ‘green tariff', whereby the supplier typically guarantees that all or part of the supply has been generated using renewable energy sources. Various studies have sought to identify variables describing and/or predicting why domestic consumers choose to purchase a green tariff. This study builds on previous work by reviewing the UK market in particular. Using data from the Understanding Society Survey (USS), a number of variables were tested for their predictive power. This included variables identified as statistically significant within other studies, and variables that - to the authors' knowledge - have not been tested through other work. Results find that individuals in the highest income quartile, those with higher qualifications, those supporting the Green political party, those exhibiting strong environmental behaviour and those householdsnot in receipt of winter fuel payments were all more likely to have purchased green tariffs. Significant to a lesser degree were strong environmental attitudes and those households with some form of renewable energy technology instal led.

Suggested Citation

  • Lange, Ian & MacPherson, Ronnie, 2012. "Determinants of the green electricity tariff uptake in the UK," Stirling Economics Discussion Papers 2012-11, University of Stirling, Division of Economics.
  • Handle: RePEc:stl:stledp:2012-11
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    File URL: http://hdl.handle.net/1893/6539
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    Cited by:

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    2. MacDonald, Scott & Eyre, Nick, 2018. "An international review of markets for voluntary green electricity tariffs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 180-192.
    3. Fabian Scheller & Isabel Doser & Emily Schulte & Simon Johanning & Russell McKenna & Thomas Bruckner, 2021. "Stakeholder dynamics in residential solar energy adoption: findings from focus group discussions in Germany," Papers 2104.14240, arXiv.org.
    4. Dagher, Leila & Bird, Lori & Heeter, Jenny, 2017. "Residential green power demand in the United States," Renewable Energy, Elsevier, vol. 114(PB), pages 1062-1068.
    5. Herbes, Carsten & Friege, Christian & Baldo, Davide & Mueller, Kai-Markus, 2015. "Willingness to pay lip service? Applying a neuroscience-based method to WTP for green electricity," Energy Policy, Elsevier, vol. 87(C), pages 562-572.
    6. Sauthoff, Saramena & Danne, Michael & Mußhoff, Oliver, 2017. "To switch or not to switch? – Understanding German consumers’ willingness to pay for green electricity tariff attributes," Department of Agricultural and Rural Development (DARE) Discussion Papers 260771, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    7. Bae, Jeong Hwan & Rishi, Meenakshi, 2018. "Increasing consumer participation rates for green pricing programs: A choice experiment for South Korea," Energy Economics, Elsevier, vol. 74(C), pages 490-502.
    8. Fabian Scheller & Isabel Doser & Daniel Sloot & Russell McKenna & Thomas Bruckner, 2020. "Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature," Energies, MDPI, vol. 13(23), pages 1-31, November.
    9. Hast, A. & Syri, S. & Jokiniemi, J. & Huuskonen, M. & Cross, S., 2015. "Review of green electricity products in the United Kingdom, Germany and Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1370-1384.
    10. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2022. "Willingness to pay for regional electricity generation – A question of green values and regional product beliefs?," Energy Economics, Elsevier, vol. 110(C).
    11. Tabi, Andrea & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2014. "What makes people seal the green power deal? — Customer segmentation based on choice experiment in Germany," Ecological Economics, Elsevier, vol. 107(C), pages 206-215.
    12. Carsten Herbes & Lorenz Braun & Dennis Rube, 2016. "Pricing of Biomethane Products Targeted at Private Households in Germany—Product Attributes and Providers’ Pricing Strategies," Energies, MDPI, vol. 9(4), pages 1-15, March.
    13. Anna Kowalska-Pyzalska, 2019. "Do Consumers Want to Pay for Green Electricity? A Case Study from Poland," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    14. Gaigalis, Vygandas & Markevicius, Antanas & Katinas, Vladislovas & Skema, Romualdas, 2014. "Analysis of the renewable energy promotion in Lithuania in compliance with the European Union strategy and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 422-435.
    15. Emily Schulte & Fabian Scheller & Wilmer Pasut & Thomas Bruckner, 2021. "Product traits, decision-makers, and household low-carbon technology adoptions: moving beyond single empirical studies," Papers 2112.11867, arXiv.org.

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    Keywords

    Green Tariff; Environmental Attitudes and Behaviours; Household Decision Making;
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