The Rural Consumer Adoption of Sustainable Energy: A PLS-SEM-ANN Approach of Conceptual Model Development and Cross Country Validation of Pakistan and Malaysia

Abstract

Sustainable and alternative energy sources of biofuel and solar power panel have been revolutionizing the lives and economy of many countries. However, these changes mainly occur in the urban areas and the rural population section has long been ignored by policy makers and government in the provision of energy. It is only recently that solar and biofuel are finally making in road to provide cheap and clean energy sources to rural population. As a result, literature on consumer behavior of rural population towards sustainable energy sources are still very scarce. The present research aims to fulfil this gap by developing a conceptual model to investigate the adoption of solar power and biofuel energy resources in the cross-cultural setting of Malaysia and Pakistan. The data was collected from the rural areas of Pakistan and Malaysia. The two-stage data analysis method of partial least square structural equation modeling (PLS-SEM) and artificial neural network (ANN) have been applied to satisfy both linear and non-linear regression assumption respectively. The results show that consumer in rural areas of Pakistan are willing and possess intention to adopt both biofuel and solar power for commercial and domestic use. Additionally, the results confirm that Branding, Economic and Altruistic factors are important in yielding intention to use towards biofuel and solar power panel in Pakistan which are validated by the results obtained in Malaysia. Other factors such as climate change awareness, retailer services quality and ease of use are also important. The results offer wide ranging theoretical and managerial implications.