Green power marketing has become increasingly important in the deregulated energy marketplace. Not only because green power products can satisfy consumers’ green preferences, but also because green power demand can push energy producers to seek more sustainable and competitive ways of generating renewable energy. Although campaigns for promoting green electricity has been developed, implemented and executed, sales of green electricity only make up a small fractional of the total energy sales, indicating that there is still a lack of understanding of consumer behavior in this marketplace. The purpose of this project is to investigate Danish households’ preference for and willingness to pay for green electricity. Methodologically, I apply both a contingent valuation approach and a discrete choice modeling approach. Data is collected from an Internet panel using self-administrated questionnaires.
This PhD project includes:
- developing a forecasting model depicting how green electricity product will penetrate into the market
- validating the theory of reason action (TRA) and the theory of planned behavior (TPB) to predict the households’ buying intention, and
- modeling consumers’ preference and willingness to pay for green electricity.
The project contributes to increase our understanding of consumer perceptions for and stated willingness-to-pay for green electricity products and to help advance the theoretical framework in the field of green power marketing. The managerial implication of this study is to help electricity retailers formulate marketing plans at the tactical and strategic levels for green electricity (e.g. how to increase the product involvement and enhance communication with consumers), and help policy makers evaluate consumers’ role in promoting renewable energy. My areas of interest are consumer behavior, green energy and consumer choice modelling.