Factors affecting citizens’ decision to invest in renewable energy

Abstract

Renewable energy sources (RES) have been acknowledged as a feasible way to produce inexhaustible energy with significantly less harmful emissions compared to fossil fuels. RES investments could be the lever for increasing the deployment of RES and citizens could contribute significant capital. However, the understanding of their decision to invest is limited. Hence, the aim of this study is to understand the reasons for which citizens would invest in RES. To achieve this aim, a structured questionnaire was designed and 1,536 Greek citizens were recruited using simple random sampling. According to results, the examined economic, environmental and social reasons were evaluated highly. Regarding the economic reasons, citizens would mainly invest to reduce electricity bills and increase their income, while factor analysis showed that an economic and an investment dimension underlie economic motives to invest. In terms of environmental reasons, citizens seemed to acknowledge the ability of renewable systems to generate less harmful emissions and, through this effect, to protect fauna and air quality. As for social reasons, citizens regarded the investment as a way to adopt pro-environmental behavior. It is recommended to highlight appeals to economic, environmental and social benefits in campaigns addressed to citizens and aiming at promoting investments.