Explaining and promoting participation in demand response programs: The role of rational and moral motivations among German energy consumers. (February 2022)

• Record Type: Journal Article
• Authors: Sloot, Daniel; Lehmann, Nico; Ardone, Armin
• Is Part Of: Energy research & social science. Volume 84(2022)
• Publication Date: 2022-02
• Subjects: Demand response participation -- Consumer motivations -- Theory of planned behavior -- Environmental self-identity -- Path analysis -- Experiment; Power resources -- Social aspects -- Periodicals; Energy consumption -- Social aspects -- Periodicals; 333.7905
• DOI: 10.1016/j.erss.2021.102431
• Languages: English
• ISSNs: 2214-6296

Abstract

Highlights: We examine motivations to participate in quota schemes, a novel type of DSM. Favorable beliefs about program benefits increase willingness to participate. Environmental self-identity predicts participation better than price consciousness. Individually tailored appeals to environmental benefits can promote participation. Practitioners could focus more on individuals' environmental motivations to participate. Abstract: Demand response programs aim to increase flexibility in electricity consumption. Yet, their success hinges on a sufficient level of consumer participation, which makes it important to understand the factors that motivate participation. Though it is often assumed that consumers participate in demand response programs for the potential financial benefits, these programs can also generate collective environmental benefits, such as an increase in the share of renewable energy. Consequently, we studied potential motivations that underlie individuals' participation in demand response programs (indicated by their acceptance, interest, and intention to participate). By examining the role of specific beliefs about costs and benefits and the role of general personal motivations (i.e., financial, environmental, and innovation-seeking) for individuals' participation in quota schemes (a novel type of incentive-based demand response), we found that both financial and environmental beliefs underlie participation. Moreover, compared to a personal financial motivation, a personal environmental motivation (and, to a lesser extent, an innovation-seeking motivation) was both more strongly related to participation and better able to explain favorable beliefs about participation. Furthermore, we experimentally manipulated different benefits and modes of participation (through frame manipulation) and found that emphasizing the environmental benefits of participation leads to stronger acceptance and interest in participating among those strongly motivated by the environment. Conversely, this tailoring effect does not exist among those strongly financially motivated when the financial benefits are emphasized. Additionally, participation was generally higher when participation was described as voluntary compared to mandatory. We discuss the theoretical and practical implications arising from these findings.