Value seeking, price sensitive, or green? Analyzing preference heterogeneity among residential energy consumers in Denmark

Energy Research and Social Science

Volumn 6, Issue , 2015, Pages 15-28

  Yang, Yingkui ^a   Solgaard, Hans Stubbe ^a   Haider, Wolfgang ^b  

^a UNIVERSITY OF SOUTHERN DENMARK   (Denmark)

^b SIMON FRASER UNIVERSITY   (Canada)

Author keywords

Preference heterogeneity; Residential electricity market; Trade off decision making

Indexed keywords

EID: 84924074279     PISSN: 22146296     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.erss.2014.11.001     Document Type: Article

References (108)

1. IEA Empowering customer choice in electricity markets 2011 International Energy Agency Paris, France
2. OECD/IEA Lessons from liberalised electricity markets 2005 The Organization for Economic Co-operation and Development (OECD) and The International Energy Agency (IEA) Paris, France
3. B.K. Sovacool What are we doing here? Analyzing fifteen years of energy scholarship and proposing a social science research agenda Energy Res Social Sci 1 2014 1 29
4. A. Weinstein Handbook of market segmentation: strategic targeting for business and technology firms 3rd ed. 2004 The Haworth Press New York & London & Oxford
5. Y. Wind, and D.R. Bell Market segmentation M.J. Baker, S. Hart, The marketing book 8th ed. 2008 Elsevier Ltd. All rights reserved. rights reserved.. Oxford
6. D. Yankelovich, and D. Meer Rediscovering market segmentation Harv Bus Rev 84 2 2006 122 131
7. S. Dibb, and L. Simkin The market segmentation workbook 1996 Thomson Learning London
8. J.H. Myers Segmentation & positioning for strategic marketing decisions 1st ed. 1996 South-Western Educational Publication Chicago, IL
9. M. Wedel, and W. Kamakura Market segmentation: conceptual and methodological foundations 2nd ed. 2000 Kluwer Academic Publishers Norwell, MA
10. Danish Government Energy strategy 2050 - from coal, oil and gas to green energy 2011 The Danish Ministry of Climate and Energy Copenhagen
11. S. Salmela, and V. Varho Consumers in the green electricity market in Finland Energy Policy 34 18 2006 3669 3683
12. S. Abdullah, and P. Mariel Choice experiment study on the willingness to pay to improve electricity services Energy Policy 38 8 2010 4570 4581
13. S. Abdullah, and P.W. Jeanty Willingness to pay for renewable energy: evidence from a contingent valuation survey in Kenya Renew Sust Energy Rev 15 6 2011 2974 2983
14. S. Bigerna, and P. Polinori Italian households' willingness to pay for green electricity Renew Sustain Energy Rev 34 2014 110 121
15. G. Ivanova Consumers' willingness to pay for electricity from renewable energy sources, Queensland, Australia Int J Renew Energy Res 2 4 2012 758 766
16. X. Guo, H. Liu, X. Mao, J. Jin, D. Chen, and S. Cheng Willingness to pay for renewable electricity: a contingent valuation study in Beijing, China Energy Policy 68 2014 340 347
17. S.S. Eriksen En klimaplan til Danmark Vedvarende Energi Miljø 2009 4 5
18. N. Dupont Grøn el fra vindmøller Vedvarende Energi Miljø 2007 24
19. Energinet.dk. Electricity. http://www.energinet.dk/EN/El/Sider/default.aspx.
20. NordREG Nordic market report 2012 - development in the Nordic electricity market 2012 NordREG (Nordic Energy Regulators) Helsinki, Finland
21. K. Ek, and P. Söderholm Households' switching behavior between electricity suppliers in Sweden Utilities Policy 16 4 2008 254 261
22. T. Gärling, A. Gamble, and E.A. Juliusson Consumers' switching inertia in a fictitious electricity market Int J Consum Stud 32 6 2008 613 618
23. C.M. Wilson, and C.W. Price Do consumers switch to the best supplier? Oxford Econ Pap 62 4 2010 647 668
24. A. Gamble, E.A. Juliusson, and T. Gärling Consumer attitudes towards switching supplier in three deregulated markets J Socio-Econ 38 5 2009 814 819
25. J.E. Wieringa, and P.C. Verhoef Understanding customer switching behavior in a liberalizing service market: an exploratory study J Serv Res 10 2 2007 174 186
26. Y. Yang Understanding household switching behavior in the retail electricity market Energy Policy 69 2014 406 414
27. P.E. Lewis, M. Pakkanen, and M. Muroma Electricity customer's lot. The status of the deregulated Finnish electricity market - consequences to the customer 2004 Finnish Ministry of Trade and Industry Helsinki
28. J. Kaenzig, S.L. Heinzle, and R. Wüstenhagen Whatever the customer wants, the customer gets? Exploring the gap between consumer preferences and default electricity products in Germany Energy Policy 53 0 2013 311 322
29. Konkurrencestyrelsen Konkurrencen på detailmarkedet for el [The competition in the electricity retail market] 2009 Konkurrencestyrelsen (Danish Agency for Competition) Copenhagen
30. M. Brown, and B. Sovacool Climate change and global energy security: technology and policy options 2011 MIT Press Cambridge
31. P.C. Boxall, and W.L. Adamowicz Understanding heterogeneous preferences in random utility models: a latent class approach Environ Resour Econ 23 4 2002 421 446
32. I.J. Bateman, R.T. Carson, B. Day, M. Hanemann, N. Hanley, and T.M. Hett Economic evaluation with stated preference techniques: a manual 2002 Edward Elgar Publishing Limited Cheltenham, United Kingdom
33. W. Adamowicz, P. Boxall, M. Williams, and J. Louviere Stated preference approaches for measuring passive use values: choice experiments and contingent valuation Am J Agric Econ 80 1 1998 64 75
34. N.D. Hanley, S. Mourato, and R.E. Wright Choice modelling approaches: a superior alternative for environmental valuation? J Econ Surv 15 3 2001 435 462
35. D.A. Hensher, J.M. Rose, and W.H. Greene Applied choice analysis: a primer 2005 Cambridge University Press Cambridge, UK
36. W.H. Greene Econometrics analysis 7th ed. 2012 Prentice Hall Boston
37. K.E. Train Discrete choice methods with simulation 2nd ed. 2009 Cambridge University Press Cambridge
38. W.H. Greene, and D.A. Hensher A latent class model for discrete choice analysis: contrasts with mixed logit Transport Res B: Meth 37 8 2003 681 698
39. D. McFadden, and K. Train Mixed MNL models for discrete response J Appl Econom 15 5 2000 447 470
40. J. Yoo, and R.C. Ready Preference heterogeneity for renewable energy technology Energy Econ 42 2014 101 114
41. J. Shen Latent class model or mixed logit model? A comparison by transport mode choice data Appl Econ 41 22 2009 2915 2924
42. N. Beharry-Borg, and R. Scarpa Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors Ecol Econ 69 5 2010 1124 1139
43. A.-K. Kosenius Heterogeneous preferences for water quality attributes: the case of eutrophication in the Gulf of Finland, the Baltic Sea Ecol Econ 69 3 2010 528 538
44. W.A. Kamakura, B.-D. Kim, and J. Lee Modeling preference and structural heterogeneity in consumer choice Mark Sci 15 2 1996 152 172
45. A. Bujosa, A. Riera, and R. Hicks Combining discrete and continuous representations of preference heterogeneity: a latent class approach Environ Resour Econ 47 4 2010 477 493
46. W. Greene, and D. Hensher Revealing additional dimensions of preference heterogeneity in a latent class mixed multinomial logit model Appl Econ 45 14 2013 1897 1902
47. P.E. Rossi, and G.M. Allenby Bayesian statistics and marketing Mark Sci 22 3 2003 304 328
48. P.E. Rossi, G.M. Allenby, and R. McCulloch Bayesian statistics and marketing 2005 John Wiley New York
49. S. Yang, and G.M. Allenby Modeling interdependent consumer preferences J Market Res 40 3 2003 282 294
50. S. Hess, M. Ben-Akiva, D. Gopinath, and J. Walker Advantages of latent class over continuous mixture of logit models Research Paper from http://www.stephanehess.me.uk/papers/Hess-Ben-Akiva-Gopinath-Walker-May-2011.pdf 2011
51. R.L. Andrews, A. Ansari, and I.S. Currim Hierarchical Bayes versus finite mixture conjoint analysis models: a comparison of fit, prediction, and partworth recovery J Market Res 39 1 2002 87 98
52. P.C. Stern Individual and household interactions with energy systems: toward integrated understanding Energy Res Social Sci 1 2014 41 48
53. C.A.D. Semeniuk, W. Haider, B. Beardmore, and K.D. Rothley A multi-attribute trade-off approach for advancing the management of marine wildlife tourism: a quantitative assessment of heterogeneous visitor preferences Aquat Conserv Mar Freshw Ecosyst 19 2 2009 194 208
54. J. Swait A structural equation model of latent segmentation and product choice for cross-sectional revealed preference choice data J Retail Consum Serv 1 2 1994 77 89
55. L.M. Hunt, W. Haider, and B. Bottan Accounting for varying setting preferences among moose hunters Leisure Sci 27 4 2005 297 314
56. R.L. Andrews, and I.S. Currim A comparison of segment retention criteria for finite mixture logit models J Market Res 40 2 2003 235 243
57. D. McFadden Conditional logit analysis of qualitative choice behaviour P. Zarembka, Frontiers in econometrics 1974 Academic Press New York 105 142
58. S. Gupta, and P.K. Chintagunta On using demographic-variables to determine segment membership in logit mixture-models J Market Res 31 1 1994 128 136
59. W.A. Kamakura, and G.J. Russell A probabilistic choice model for market-segmentation and elasticity structure J Market Res 26 4 1989 379 390
60. P. Schmidt, and R.P. Strauss The prediction of occupation using multiple logit models Int Econ Rev 16 2 1975 471 486
61. ® Choice 4.0 user's manual 2005 Statistical Innovation, Inc. Belmont, MA
62. R. Ozaki Adopting sustainable innovation: what makes consumers sign up to green electricity? Bus Strateg Environ 20 1 2011 1 17
63. R. Wüstenhagen, J. Markard, and B. Truffer Diffusion of green power products in Switzerland Energy Policy 31 7 2003 621 632
64. E.M. Rogers Diffusion of innovations 1995 Free Press New York
65. Y. Yang Perspectives on marketing of green electricity [Ph.D. dissertation] 2013 University Press of Southern Denmark, Faculty of Social Science, University of Southern Denmark
66. T. Mainieri, E.G. Barnett, T.R. Valdero, J.B. Unipan, and S. Oskamp Green buying: the influence of environmental concern on consumer behavior J Soc Psychol 137 2 1997 189 204
67. J. Moisander Motivational complexity of green consumerism Int J Consumer Stud 31 4 2007 404 409
68. B. Schlegelmilch, G. Bohlen, and A. Diamantopoulos The link between green purchasing decisions and measures of environmental consciousness Eur J Market 30 5 1996 35 55
69. T.A. Brown Confirmatory factor analysis for applied research 2006 The Guilford Press New York
70. A.A. Goett, K. Hudson, and K.E. Train Customers' choice among retail energy suppliers: the willingness-to-pay for service attributes Energ J 21 4 2000 1 28
71. S. Navrud, and K.G. Braten Consumers' preferences for green and Brown electricity: a choice modelling approach Rev Écon Polit 117 5 2007 795 811
72. B. Roe, M.F. Teisl, A. Levy, and M. Russell US consumers' willingness to pay for green electricity Energy Policy 29 11 2001 917 925
73. L.L. Wood, A.E. Kenyon, W.H. Desvousges, and L.K. Morander How much are customers willing to pay for improvements in health and environmental quality? Electricity J 8 4 1995 70 77
74. J.J. Louviere, D.A. Hensher, and J.D. Swait Stated choice methods - analysis and application 2000 Cambridge University Press Cambridge, UK
75. E. Lancsar, and J. Louviere Conducting discrete choice experiments to inform healthcare decision making: a user's guide Pharmacoeconomics 26 8 2008 661 677
76. W.F. Kuhfeld, R.D. Tobias, and M. Garratt Efficient experimental-design with marketing-research applications J Market Res 31 4 1994 545 557
77. A.G. Lazari, and D.A. Anderson Designs of discrete-choice set experiments for estimating both attribute and availability cross effects J Market Res 31 3 1994 375 383
78. B.J. Kanninen Optimal design for multinomial choice experiments J Market Res 39 2 2002 214 227
79. S. Ferrini, and R. Scarpa Designs with a priori information for nonmarket valuation with choice experiments: a Monte Carlo study J Environ Econ Manag 53 3 2007 342 363
80. R. Scarpa, and J.M. Rose Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why Aust J Agric Resour Econ 52 3 2008 253 282
81. V. Fedorov Theory of optimal designs 1972 Academic Press New York
82. ® 9 design of experiments guide 2011 SAS Institute Inc. Cary, North Carolina
83. T. Terawaki, K. Kuriyama, and K. Yoshida The importance of eliminating unrealistic alternatives in choice experiments. Discussion Paper 2004 College of Economics, Ritsumeikan University Version: November 17, 2004
84. V. Adamowicz, and P. Boxall Future directions of stated choice methods for environment valuation Economics society conference on choice experiments: a new approach to environmental valuation London 2001
85. J. Huber, and K. Zwerina The importance of utility balance in efficient choice designs J Market Res 33 3 1996 307 317
86. W. Samuelson, and R. Zeckhauser Status quo bias in decision making J Risk Uncertainty 1 1 1988 7 59
87. D. Kahneman, J.L. Knetsch, and R.H. Thaler Anomalies - the endowment effect, loss aversion, and status-quo bias J Econ Perspect 5 1 1991 193 206
88. R. Dhar Consumer preference for a no-choice option J Consum Res 24 2 1997 215 231
89. J. Reiermann Ny lov om elhandel favoriserer de store Mandag Morgen 33 2012 7 9
90. Danmarks Statistik It-anvendelse i befolkningen - 2012 2012 Danmarks Statistik Copenhagen, Denmark
91. Danmarks Statistik Indkomster 2012 2014 Danmarks Statistik Copenhagen, Denmark
92. I.H. Rowlands, D. Scott, and P. Parker Consumers and green electricity: profiling potential purchasers Bus Strateg Environ 12 1 2003 36 48
93. J.J. Louviere Choice experiments: an overview of concepts and issues J. Bennett, R. Blamey, The choice modelling approach to environmental valuation 2001 Edward Elgar Publishing Limited Cheltenham, UK 13 36
94. W.Y. Hu, A. Hunnemeyer, M. Veeman, W. Adamowicz, and L. Srivastava Trading off health, environmental and genetic modification attributes in food Eur Rev Agric Econ 31 3 2004 389 408
95. J. Swait Advanced choice models B.J. Kannien, Valuing environmental amenities using stated choice studies 2006 Springer Dordrecht, The Netherlands 229 293
96. M. Ben-Akiva, and J. Swait The Akaike likelihood ratio index Transport Sci 20 2 1986 133 136
97. F. Vaida, and S. Blanchard Conditional Akaike information for mixed-effects models Biometrika 92 2 2005 351 370
98. F. Carlsson, and P. Martinsson Design techniques for stated preference methods in health economics Health Econ 12 4 2003 281 294
99. G.P. Latons Consumer behavior in action: real-life applications for marketing managers 2011 M.E. Sharpe, Inc. New York
100. W. Adamowicz, D. Bunch, T. Cameron, B.C. Dellaert, M. Hanneman, and M. Keane Behavioral frontiers in choice modeling Mark Lett 19 3-4 2008 215 228
101. B. Byrnes, C. Jones, and S. Goodman Contingent valuation and real economic commitments: evidence from electric utility green pricing programmes J Environ Plann Manage 42 2 1999 149 166
102. T.J. Gerpott, and I. Mahmudova Determinants of green electricity adoption among residential customer in Germany Int J Consum Stud 34 4 2010 464 473
103. B.B. Schelgelmilch, G.M. Bohlen, and A. Diamantopoulos The link between green purchasing decisions and measures of environmental consciousness Eur J Market 30 5 1996 35 55
104. K. Ek, and P. Söderholm Norms and economic motivation in the Swedish green electricity market Ecol Econ 68 1-2 2008 169 182
105. K. Arkesteijn, and L. Oerlemans The early adoption of green power by Dutch households - an empirical exploration of factors influencing the early adoption of green electricity for domestic purposes Energy Policy 33 2 2005 183 196
106. Elpristavlen.dk. http://www.elpristavlen.dk/.
107. A.M. Borchers, J.M. Duke, and G.R. Parsons Does willingness to pay for green energy differ by source? Energy Policy 35 6 2007 3327 3334
108. Danish Energy Agency Annual Energy Statistics. Key figures from DEA's preliminary energy statistics 2013. http://www.ens.dk/en/info/facts-figures/energy-statistics-indicators-energy-efficiency/annual-energy-statistics [accessed November 20].