The motivational drivers behind consumer preferences for regional electricity-Results of a choice experiment in Southern Germany

In response to climate change, Germany, like many other countries, has steadily expanded its electricity gen-eration from renewables. Meanwhile, the ongoing trend towards regional products in other sectors raises questions regarding household consumers' preferences for regional electricity tariffs. While a few studies have concluded that regionality is a product attribute consumers prefer, little is known about the factors underlying these preferences. We fill this gap using insights from a choice experiment and additional motivational data from 777 (potential) customers of a municipal energy supplier in Southwest Germany. We determine both re-spondents' preferences and examine the role of environmental and regional motivations in explaining these preferences using a sophisticated statistical model. Our results show that, on average, the share of regional generation is the second most important attribute after a tariff's price. Notably, consumer preferences for regional electricity are driven by regional rather than environmental motivations. Results on consumer prefer-ences become more nuanced when respondents are assigned to distinct clusters, with three of the five clusters attributing moderate to strong importance to regional electricity generation. Again, above-average regional motivations underpin these preferences. We discuss policy implications arising from these findings.

Automated summary

Germany has been expanding its renewable energy generation in response to climate change. The preference for regional electricity tariffs among household consumers remains uncertain, with little knowledge about the factors underlying these preferences. Using a choice experiment and data from customers of a municipal energy supplier in Southwest Germany, this study examines consumers' preferences for regional electricity and the role of environmental and regional motivations. The results show that, on average, regional generation is the second most important attribute after price, and consumer preferences are driven by regional rather than environmental motivations. Furthermore, preferences become more nuanced when respondents are assigned to distinct clusters, with above-average regional motivations supporting these preferences. The policy implications of these findings are discussed.