Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices?
IntroductionMost countries want to make the transition to increased or even exclusive use of renewable energy. To achieve this goal, how can individuals be persuaded to use more renewable electricity? For example, does the way energy companies communicate so-called consumer subsidies matter in this...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2023-10-01
|
| Series: | Frontiers in Psychology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2023.1155556/full |
| _version_ | 1827799912348123136 |
|---|---|
| author | Swen J. Kühne Ester Reijnen |
| author_facet | Swen J. Kühne Ester Reijnen |
| author_sort | Swen J. Kühne |
| collection | DOAJ |
| description | IntroductionMost countries want to make the transition to increased or even exclusive use of renewable energy. To achieve this goal, how can individuals be persuaded to use more renewable electricity? For example, does the way energy companies communicate so-called consumer subsidies matter in this regard, and if so, which communication strategy is best? For example, is a monetary promotion (e.g., cashback) better than a non-monetary one (e.g., gift)?MethodsIn a total of four studies (with a total of more than 1700 participants), we investigated what type of promotion most influenced the choice of a renewable energy product, varying, for example, the environmental friendliness of the renewable energy product.ResultsThe monetary promotion (e.g., get $35 back through subsidies) appeared to be the most successful; it significantly increased the choice of the renewable electricity product (i.e., between 12–22%). However, this result was only evident when the subsidized renewable product was not the product already preferred by most individuals. Other measures, such as the willingness to pay (WTP), showed no differential effects.DiscussionOverall, the observed pattern suggests that promoting renewable energy choices, is similar to promoting donations to a charity. Accordingly, the description of the consumer subsidy as a monetary promotion (i.e., cashback or negative labeling) is most effective in terms of promotion. However, the effect of monetary promotions seems to diminish if the subsidized product is already the product preferred by most consumers. Nevertheless, the use of monetary promotions can encourage the transition to renewable energy. |
| first_indexed | 2024-03-11T19:59:33Z |
| format | Article |
| id | doaj.art-780e293899354d8aa98994f7aaa13199 |
| institution | Directory Open Access Journal |
| issn | 1664-1078 |
| language | English |
| last_indexed | 2024-03-11T19:59:33Z |
| publishDate | 2023-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Psychology |
| spelling | doaj.art-780e293899354d8aa98994f7aaa131992023-10-04T10:01:27ZengFrontiers Media S.A.Frontiers in Psychology1664-10782023-10-011410.3389/fpsyg.2023.11555561155556Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices?Swen J. KühneEster ReijnenIntroductionMost countries want to make the transition to increased or even exclusive use of renewable energy. To achieve this goal, how can individuals be persuaded to use more renewable electricity? For example, does the way energy companies communicate so-called consumer subsidies matter in this regard, and if so, which communication strategy is best? For example, is a monetary promotion (e.g., cashback) better than a non-monetary one (e.g., gift)?MethodsIn a total of four studies (with a total of more than 1700 participants), we investigated what type of promotion most influenced the choice of a renewable energy product, varying, for example, the environmental friendliness of the renewable energy product.ResultsThe monetary promotion (e.g., get $35 back through subsidies) appeared to be the most successful; it significantly increased the choice of the renewable electricity product (i.e., between 12–22%). However, this result was only evident when the subsidized renewable product was not the product already preferred by most individuals. Other measures, such as the willingness to pay (WTP), showed no differential effects.DiscussionOverall, the observed pattern suggests that promoting renewable energy choices, is similar to promoting donations to a charity. Accordingly, the description of the consumer subsidy as a monetary promotion (i.e., cashback or negative labeling) is most effective in terms of promotion. However, the effect of monetary promotions seems to diminish if the subsidized product is already the product preferred by most consumers. Nevertheless, the use of monetary promotions can encourage the transition to renewable energy.https://www.frontiersin.org/articles/10.3389/fpsyg.2023.1155556/fullelectricity product choicesconsumer subsidiesincentivesolar electricitygift |
| spellingShingle | Swen J. Kühne Ester Reijnen Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? Frontiers in Psychology electricity product choices consumer subsidies incentive solar electricity gift |
| title | Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? |
| title_full | Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? |
| title_fullStr | Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? |
| title_full_unstemmed | Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? |
| title_short | Buy solar, get cashback: do consumer subsidies described as promotions influence electricity choices? |
| title_sort | buy solar get cashback do consumer subsidies described as promotions influence electricity choices |
| topic | electricity product choices consumer subsidies incentive solar electricity gift |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2023.1155556/full |
| work_keys_str_mv | AT swenjkuhne buysolargetcashbackdoconsumersubsidiesdescribedaspromotionsinfluenceelectricitychoices AT esterreijnen buysolargetcashbackdoconsumersubsidiesdescribedaspromotionsinfluenceelectricitychoices |