Consumers and green electricity: profiling potential purchasers
Corresponding Author
Ian H. Rowlands
University of Waterloo, Canada
Environment and Business Program, Faculty of Environmental Studies, University of Waterloo, Waterloo, ON N2L 3G1, Canada.Search for more papers by this authorDaniel Scott
Meteorological Service of Canada, Environment Canada
Search for more papers by this authorCorresponding Author
Ian H. Rowlands
University of Waterloo, Canada
Environment and Business Program, Faculty of Environmental Studies, University of Waterloo, Waterloo, ON N2L 3G1, Canada.Search for more papers by this authorDaniel Scott
Meteorological Service of Canada, Environment Canada
Search for more papers by this authorAbstract
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.
REFERENCES
- Anderson WT Jr, Cunningham WH. 1972. The socially conscious consumer. Journal of Marketing 36: 23–31.
- Balderjahn I. 1988. Personality variables and environmental attitudes as predictors of ecologically responsible consumption patterns. Journal of Business Research 17(1): 51–56.
- Batley SL, Colbourne D, Fleming PD, Urwin P. 2001. Citizen versus consumer: challenges in the UK green power market. Energy Policy 29: 479–487.
- Blaikie N. 1992. The nature and origin of ecological world views: an Australian study. Social Science Quarterly 73: 144–165.
- Dillman DA. 1978. Mail and Telephone Surveys. Wiley: Toronto.
- Dunlap RE. 1975. The impact of political orientation on environmental attitudes and actions. Environment and Behavior 7(4): 428–454.
10.1177/001391657500700402 Google Scholar
- Dunn S. 2000. Micropower: the Next Electrical Era. Worldwatch Institute: Washington, DC.
- Ellen PS, Wiener JL, Cobb-Walgren C. 1991. The role of perceived consumer effectiveness in motivating environmentally conscious behaviors. Journal of Public Policy and Marketing 10(2): 102–117.
- Farhar BC. 1999. Willingness to Pay for Electricity from Renewable Resources: a Review of Utility Market Research, NREL/TP.550.26148. National Renewable Energy Laboratory: Golden, CO.
- Farhar BC, Coburn TC. 2000. A Market Assessment of Residential Grid-Tied PV Systems in Colorado, NREL/TP-550-25283. National Renewable Energy Laboratory: Golden, CO.
- Farhar BC, Houston AH. 1996. Willingness to Pay for Electricity from Renewable Energy, NREL/TP-460-21216. National Renewable Energy Laboratory: Golden, CO.
- Ferguson EG. 1999. Renewable Resources and Conservation: What Consumers Want. Bonneville Power Administration: Portland, OR.
- Freeman NB. 1996. The Politics of Power: Ontario Hydro and its Government, 1906–1995. University of Toronto Press: Toronto.
- Granzin KL, Olsen JE. 1991. Characterizing participants in activities protecting the environment: a focus on donating, recycling, and conservation behaviors. Journal of Public Policy and Marketing 10(2): 1–27.
- Hirsh RF, Serchuk AH. 1999. Power switch: will the restructured electric utility system help the environment? Environment 41(7): 4–9, 32–39.
- Kalafatis SP, Pollard M, East R, Tsogas MH. 1999. Green marketing and Ajzen's theory of planned behaviour: a cross-market examination. Journal of Consumer Marketing 16(5): 441–460.
10.1108/07363769910289550 Google Scholar
- Kilbourne WE, Beckmann SC. 1998. Review and critical assessment of research on marketing and the environment. Journal of Marketing Management 14(6): 513–532.
10.1362/026725798784867716 Google Scholar
- Kilbourne WE, Beckmann SC, Thelen E. 2002. The role of the dominant social paradigm in environmental attitudes: a multinational examination. Journal of Business Research 55: 193–204.
- Kinnear TC, Taylor JR, Ahmed SA. 1974. Ecologically concerned consumers: who are they? Journal of Marketing 38: 20–24.
- Laroche M, Bergeron J, Barbaro-Forleo G. 2001. Targeting consumers who are willing to pay more for environmentally friendly products. Journal of Consumer Marketing 18(6): 503–520.
10.1108/EUM0000000006155 Google Scholar
- Ministry of Energy, Science and Technology (MEST). 2001. Who, What, Why–the Background of Electricity Restructuring. MEST: Toronto. http://www.est.gov.on.ca/english/en/en_elec_faq_bg.html [16 July 2001].
- Murphy PE, Kangun N, Locander WB. 1978. Environmentally concerned consumers: racial variations. Journal of Marketing 42: 61–66.
- Ontario Power Generation (OPG). 2001. Annual Information Form. OPG: Toronto. http://www.opg.com/investor/AIF_000.pdf [30 June 2001].
- Parker P, Scott D, Rowlands IH. 2000. Residential energy consumption and greenhouse gas emissions: global context for local action. Environments 28(3): 11–28.
- Roberts JA. 1996. Green consumers in the 1990s: profile and implications for advertising. Journal of Business Research 36: 217–231.
- Roberts JA, Bacon DR. 1997. Exploring the subtle relationships between environmental concern and ecologically conscious consumer behavior. Journal of Business Research 40: 79–89.
- Roe B, Teisl MF, Levy A, Russell M. 2001. US consumers' willingness to pay for green electricity. Energy Policy 29: 917–925.
- Rowlands IH, Parker P, Scott D. 2000. Ready to go green? The prospects for premium-priced green electricity in Waterloo Region, Ontario. Environments 28(3): 97–119.
- Rowlands IH, Parker P, Scott D. 2002. Consumer perceptions of ‘green power’. Journal of Consumer Marketing 19(2): 112–127.
10.1108/07363760210420540 Google Scholar
- Samdahl DM, Robertson R. 1989. Social determinants of environmental concern: specification and test of the model. Environment and Behavior 21(1): 57–81.
- Schwepker CH Jr, Cornwell TB. 1991. An examination of ecologically concerned consumers and their intention to purchase ecologically packaged products. Journal of Public Policy and Marketing 10(2): 77–101.
- Scott D. 1999. Equal opportunity, unequal results: determinants of household recycling intensity. Environment and Behavior 31(2): 267–290.
- Shrum LJ, McCarty JA, Lowrey TM. 1995. Buyer characteristics of the green consumer and their implications for advertising strategy. Journal of Advertising 24(2): 71–82.
- Simmons Market Research Bureau. 1991. Study of Media and Markets. Syndicated Division of Simmons: New York.
- Stern PC, Dietz T, Kalof L. 1993. Value orientations, gender, and environmental concern. Environment and Behavior 25(3): 322–348.
- Straughan RD, Roberts JA. 1999. Environmental segmentation alternatives: a look at green consumer behavior in the new millennium. Journal of Consumer Marketing 16(6): 558–575.
10.1108/07363769910297506 Google Scholar
- Van Liere KD, Dunlap RE. 1980. The social bases of environmental concern: a review of hypotheses, explanations, and empirical evidence. Public Opinion Quarterly 44: 181–197.
10.1086/268583 Google Scholar
- Wagner SA. 1997. Understanding Green Consumer Behaviour: a Qualitative Cognitive Approach. Routledge: New York.
10.4324/9780203444030 Google Scholar
- Webster FE Jr. 1975. Determining the characteristics of the socially conscious consumer. Journal of Consumer Research 2(3): 188–196.
- Wiser R. 1998. Green power marketing: increasing customer demand for renewable energy. Utilities Policy 7: 107–119.
10.1016/S0957-1787(98)00005-8 Google Scholar
- Wiser RH, Fowlie M, Holt EA. 2001. Public goods and private interests: understanding non-residential demand for green power. Energy Policy 29: 1085–1097.
- Wohlgemuth N, Getzner M, Park J. 1999. Green power: designing a green electricity marketing strategy. In Greener Marketing: a Global Perspective on Greening Marketing Practice, M Charter, MJ Polonsky (eds). Greenleaf: Sheffield; 362–380.
10.9774/GLEAF.978-1-907643-20-0_26 Google Scholar
- Zimmer MR, Stafford TF, Stafford MR. 1994. Green issues: dimensions of environmental concern. Journal of Business Research 30(1): 63–74.