Socioeconomic Factors Driving the Transition to a Low-Carbon Energy System

Abstract

Citizen participation via different investment schemes may be a promising solution to the financing barriers inhibiting energy transition. In this regard, citizens may be approached as potential investors in renewables, but, to mobilize their capital, strategies need to be developed. Much like other services or products seeking to improve their market position, renewable energy investments by citizens also require dedicated efforts to acquire a strong market position. Using a large sample of Greek citizens, this study investigated whether it is possible to identify distinct and addressable citizen clusters which can enable energy developers and marketers to effectively address the preferences and needs of potential investor segments. The performance of k-means cluster analysis identified four clusters: Indifferent Investors were neither driven by economic or social factors, Enthusiastic Investors were motivated both by economic and social factors, Pro-environmental Investors were driven by the environmental benefits, and Social Investors were motivated by the social aspects of the investment. Moreover, each cluster demonstrated different levels of willingness-to-invest in renewable energy and were knowledge about renewable energy investments. It was concluded that citizens should not be approached as a homogeneous target group by marketing experts and policymakers, while novel strategies should be followed.

Keywords

• energy transition
• renewable energy
• socioeconomic drivers
• citizen investment
• cluster analysis
• attitudes to renewable energy