TY - JOUR
T1 - Risk preferences and purchase of energy-efficient technologies in the residential sector
AU - Qiu, Yueming
AU - Colson, Gregory
AU - Grebitus, Carola
N1 - Publisher Copyright:
© 2014 Elsevier B.V.
PY - 2014/11/1
Y1 - 2014/11/1
N2 - Perceived risk in future energy cost savings of energy efficient technologies has been well identified as a major barrier to the adoption of such technologies. However, direct empirical evidence of the impact of consumer risk aversion on the adoption of energy efficient technologies has been limited. In this paper, we elicit consumer risk preferences using a multiple price list experiment tailored to household energy decisions. We then use the elicited risk preferences to explain consumers' self-reported historical purchase of energy efficient appliances and installation of energy efficiency retrofitting technologies. Using data from 432 homeowners from Arizona and California, USA, results show that more risk averse consumers are less likely to adopt energy efficient technologies (except for the case of energy efficient air-conditioners). In addition, the findings provide evidence that households' perceived mobility as measured by the probability of moving within five years, can amplify the negative impact of risk aversion on the adoption of energy efficiency retrofitting technologies. Overall, the results provide implications for policy makers and companies involved in promoting energy efficient technologies.
AB - Perceived risk in future energy cost savings of energy efficient technologies has been well identified as a major barrier to the adoption of such technologies. However, direct empirical evidence of the impact of consumer risk aversion on the adoption of energy efficient technologies has been limited. In this paper, we elicit consumer risk preferences using a multiple price list experiment tailored to household energy decisions. We then use the elicited risk preferences to explain consumers' self-reported historical purchase of energy efficient appliances and installation of energy efficiency retrofitting technologies. Using data from 432 homeowners from Arizona and California, USA, results show that more risk averse consumers are less likely to adopt energy efficient technologies (except for the case of energy efficient air-conditioners). In addition, the findings provide evidence that households' perceived mobility as measured by the probability of moving within five years, can amplify the negative impact of risk aversion on the adoption of energy efficiency retrofitting technologies. Overall, the results provide implications for policy makers and companies involved in promoting energy efficient technologies.
KW - Appliances
KW - Energy efficiency
KW - Home energy improvements
KW - Retrofit
KW - Risk preferences
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U2 - 10.1016/j.ecolecon.2014.09.002
DO - 10.1016/j.ecolecon.2014.09.002
M3 - Article
AN - SCOPUS:84922435527
SN - 0921-8009
VL - 107
SP - 216
EP - 229
JO - Ecological Economics
JF - Ecological Economics
ER -