This study examines the relationship between consumers’ perceptions of the environmental impact of different energy resources and consumers’ stated willingness‐to‐pay a premium for “green power” (electricity generated by more environmentally‐friendly means). Those developing green power products can choose to include any number of energy resources in their offerings. Given this, information about potential purchasers’ preferences is extremely valuable. To investigate this further, a total of 480 residents of Waterloo Region, a community in southern Ontario (Canada), were surveyed. The aforementioned relationship was investigated using chi‐square tests and analysis of variance procedures. Significant differences between those who stated a willingness to pay a large premium for green power and those who stated a willingness to pay only a small (or no) premium for green power were found for three of 11 energy resources investigated – namely, nuclear power, large‐scale hydropower and natural gas. Therefore, these energy resources are not as popular among the most environmentally‐mobilized section of the consumer market as general surveys would suggest. A variety of managerial implications are drawn from the results. Future directions for research are also offered.
Cities, regional governments and their local utilities are taking leading roles in programmes to reduce greenhouse gas emissions. Agenda 21 highlighted the need for such local action to achieve the goals of the 1992 Earth Summit and the United Nations Framework Convention on Climate Change. This trend of increasing local action was demonstrated dramatically in Canada in 2006 when the newly elected federal government cancelled many of the previous government's climate change programmes. The EnerGuide for Houses Program illustrates the growing importance of local decisions where the federal government developed a home energy rating system that was delivered through a range of partnerships across the country. Despite all political parties voting to increase funding for the programme in 2005, the Conservative government cancelled it in May 2006. The response by provincial and local governments was immediate. Their actions revealed the ability and desire among lower-tier governments to sustain popular climate change initiatives. Both the political responses and financial implications are included in the examination of the shift in environmental responsibility from the national to the local sphere.
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