What makes electricity consumers change their behavior? Influence of attitude and perceived impact of DR programs on awareness

Abstract

PurposeIn this study, the authors propose a confirmatory factor analysis (CFA) to create a tenable measurement model and identify the factors that have the potential to enhance awareness of pro-environmental measures. The successful implementation of demand response (DR) programs and their required infrastructure is significant for moving towards green energy communities and a better environment for living. Not only can renewable energy capacities contribute to this desideratum, but also electricity consumers who, until the last decade, have played a passive role.Design/methodology/approachTo answer these questions, a complex data set of 243 post-trial questions created by the Irish CER are analyzed using first-order and hierarchical CFA models with several SAS procedures (PROC CALIS, MIANALYZE). The questionnaire was launched to over 3,000 electricity consumers from Ireland that were participants to a trial program after the installation of smart metering systems and implementation of DR programs.FindingsThe effect of five latent factors – positive attitude, negative attitude, perceived impact of own actions, price- and incentive-DR programs – is measured. With a bi-factor CFA measurement model, the authors assess that they significantly influence the electricity consumers' awareness.Research limitations/implicationsHowever, these findings have to be backed up by relevant information and simulations showing consumers benefits in exchange to their efforts. They have research implications on the design of the business models and DR programs pointing out the importance of benefits and fairness of value sharing mechanisms within energy communities.Practical implicationsThus, the electricity consumers may change their consumption behavior as they positively perceive the implementation of DR programs.Originality/valueThis paper fulfills an identified need to study post-trial questionnaire and reveal latent factors that make electricity consumer change their behavior.