Electricity consumers require significant motivation and reassurance to purchase environmentally sound electricity, according to a new report by the University of Melbourne.

The report, “Assessing the willingness to pay more for ecologically sound electricity”, suggests that government, in collaboration with electricity providers, has a more active role to play in encouraging a greater uptake of green electricity.

Dr Angela Paladino, from the Department of Management and Marketing at the University says that such a move could lead to consumers becoming less price sensitive in the long term.

“Consumers are becoming increasingly involved in their electricity purchase. They are ready to pay greater attention to what providers are saying, and to educate themselves about green energy, its costs and its benefits. Such knowledge and understanding could in turn lead to consumers becoming less concerned with price.

“Government leadership will also provide an incentive for consumers to act if they feel that everyone is contributing to the avoidance of pollution and environmental degradation.”

The University surveyed over 1800 people around Australia on consumer attitudes towards the purchase of green electricity as part of a collaboration with CSIRO.

Dr Paladino says that marketers and policy makers need to pay attention to a range of variables that influence consumers and their attitudes, which include environmental concern, objective knowledge, green participation and environmental impact.

The credibility of electricity providers also played a role, according to Dr Paladino. “This opens up an opportunity for green electricity providers to increase the visibility of their product use and attribute an ‘aspirational’ image to their product.”