Green or greedy: the relationship between perceived benefits and homeowners' intention to adopt residential low-carbon technologies

TL;DR

This study explores how perceived environmental and financial benefits influence homeowners' intentions to adopt low-carbon technologies, revealing that environmental benefits initially drive attitudes but financial benefits become more influential in the decision process.

Contribution

It provides empirical evidence on the shifting influence of environmental and financial benefits on adoption intentions using structural equation modeling.

Findings

Environmental benefits have a stronger initial impact on attitudes.

Financial benefits have a higher association with adoption intention.

Both benefits positively influence homeowners' decision-making process.

Abstract

Transitioning to a net-zero economy requires a nuanced understanding of homeowners decision-making pathways when considering the adoption of Low Carbon Technologies (LCTs). These LCTs present both personal and collective benefits, with positive perceptions critically influencing attitudes and intentions. Our study analyses the relationship between two primary benefits: the household-level financial gain and the broader environmental advantage. Focusing on the intention to adopt Rooftop Photovoltaic Systems, Energy Efficient Appliances, and Green Electricity Tariffs, we employ Partial Least Squares Structural Equation Modeling to demonstrate that the adoption intention of the LCTs is underpinned by the Theory of Planned Behaviour. Attitudes toward the LCTs are more strongly related to product-specific benefits than affective constructs. In terms of evaluative benefits, environmental benefits exhibit a higher positive association with attitude formation compared to financial benefits. However, this relationship switches as homeowners move through the decision process with the financial benefits of selected LCTs having a consistently higher association with adoption intention. At the same time, financial benefits also positively affect attitudes. Observing this trend across both low- and high-cost LCTs, we recommend that policymakers amplify homeowners' recognition of the individual benefits intrinsic to LCTs and enact measures that ensure these financial benefits.