Study finds Germans willing to pay for green power
A recent study conducted by DIW econ finds that German consumers not only believe that their electricity's ecological aspects are important, but also that they are willing to pay more for green power – especially from local utilities that invest in renewables.
The representative study was conducted by DIW econ, an independent subsidiary of the German Institute for Economic Research (BIW) on behalf of Entega, a German seller of green power. 83 percent of those surveyed stated that they believe carbon emissions need to be reduced, for instance in our production. The remaining 17 percent were not included in the rest of the survey.
Of the remaining sample population, 20 percent have already switched to a provider of 100 percent green power; for roughly a decade now, there has been competition on the German (and indeed, on the European) power market, with customers being able to switch power providers. Nonetheless, few have done so, as the survey confirms. The authors write that it is "interesting that consumers think it is more important that their current provider invest in renewables than for them to switch to a power package consisting entirely of renewable electricity." One explanation, the authors continue, is that German consumers probably make a distinction between "old" generators of renewable power (such as decades-old hydro dams) and new generating capacity.
While there are quality labels for green power in Germany, only 2 to 3 percent of those surveyed said they are "familiar or very familiar" with the labels – and the plurality of labels is probably itself part of the problem.
Perhaps most interestingly, the study found that German power consumers are willing to pay quite a bit more for green power – from 1.88 cents on the average per kilowatt-hour for the aforementioned, little-known labels to 8.44 cents per kilowatt-hour if the "power provider invests in renewables." These figures should be compared to the current 3.59 cents currently added on as a surcharge to the retail rate to cover German feed-in tariffs, though the study itself explicitly states that it is limited to people's willingness to pay more for their own power, so its findings should not be considered generally applicable to the German public's willingness to pay this surcharge in general.
The study is available in German as a PDF here. (Craig Morris)
