Explaining and promoting participation in demand response programs: The role of rational and moral motivations among German energy consumers

Demand response programs aim to increase flexibility in electricity consumption. Yet, their success hinges on a sufficient level of consumer participation, which makes it important to understand the factors that motivate participation. Though it is often assumed that consumers participate in demand response programs for the potential financial benefits, these programs can also generate collective environmental benefits, such as an increase in the share of renewable energy. Consequently, we studied potential motivations that underlie individuals' participation in demand response programs (indicated by their acceptance, interest, and intention to participate). By examining the role of specific beliefs about costs and benefits and the role of general personal motivations (i. e., financial, environmental, and innovation-seeking) for individuals' participation in quota schemes (a novel type of incentive-based demand response), we found that both financial and environmental beliefs underlie participation. Moreover, compared to a personal financial motivation, a personal environmental motivation (and, to a lesser extent, an innovation-seeking motivation) was both more strongly related to participation and better able to explain favorable beliefs about participation. Furthermore, we experimentally manipulated different benefits and modes of participation (through frame manipulation) and found that emphasizing the environmental benefits of participation leads to stronger acceptance and interest in participating among those strongly motivated by the environment. Conversely, this tailoring effect does not exist among those strongly financially motivated when the financial benefits are emphasized. Additionally, participation was generally higher when participation was described as voluntary compared to mandatory. We discuss the theoretical and practical implications arising from these findings.

Automated summary

The success of demand response programs depends on consumer participation, which can be motivated by financial benefits as well as collective environmental benefits. Individual motivations for participation include financial and environmental aspects, with environmental motivations being more strongly related to participation. Emphasizing environmental benefits can increase interest among environmentally motivated individuals, while participation rates are generally higher when participation is voluntary compared to mandatory.