Black or green? Exploring the drivers and roadblocks behind renewable electricity consumption

ABSTRACT

This article explores the nature of the green power market (households) in Australia and identifies the motivations behind the household purchase of green electricity. Attribution theory has shed new light on consumer processes and the interpretation of information that informs brand and service development strategies. Our study highlights how organisational image and perception of prices plays a significant role in either assisting or impeding sustainable consumption behaviours. This article uses survey data to improve understanding of Australian household norms and attitudes that drive green electricity purchase behaviours. In doing so, it presents the options that would be available to renewable electricity providers to increase their appeal to the consumer. The study suggests that the government should be clear in disseminating relevant and factual information information to consumers, while organisations should focus on product differentiation, value-added services and customer orientation to increase the adoption level of renewable electricity. We leverage off attribution theory and attitudinal frameworks to understand these insights. These are imperative to inform appropriate sustainable brands and innovations in the renewable power sector, and government environmental policy.

KEYWORDS:

• Attribution theory
• green electricity
• norms
• attitudes
• price perceptions

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. The premium payment is a fixed payment that is additional to the retail price of electricity for each unit of renewable energy produced (Uran and Krajcar 2013). The feed-in tariff is a price-based incentive scheme which allows renewable generators to sell their electricity in the market under a fixed tariff, which, in turn reduces the risk for investors setting a guaranteed long term payment for renewable electricity sources (Ciarreta, Espinosa, and Pizarro-Irizar 2014).