10 1016@j SPC 2020 10 031 PDF
10 1016@j SPC 2020 10 031 PDF
10 1016@j SPC 2020 10 031 PDF
PII: S2352-5509(20)31371-3
DOI: https://doi.org/10.1016/j.spc.2020.10.031
Reference: SPC 429
Please cite this article as: Muhammad Irfan , Yu Hao , Muhammad Ikram , Haitao Wu ,
Rabia Akram , Abdul Rauf , Assessment of the public acceptance and utilization of re-
newable energy in Pakistan, Sustainable Production and Consumption (2020), doi:
https://doi.org/10.1016/j.spc.2020.10.031
This is a PDF file of an article that has undergone enhancements after acceptance, such as the addition
of a cover page and metadata, and formatting for readability, but it is not yet the definitive version of
record. This version will undergo additional copyediting, typesetting and review before it is published
in its final form, but we are providing this version to give early visibility of the article. Please note that,
during the production process, errors may be discovered which could affect the content, and all legal
disclaimers that apply to the journal pertain.
Muhammad Irfana,*, Yu Haoa,b,c,d,e,*, Muhammad Ikramf, Haitao Wua,b, Rabia Akramg, Abdul Raufh
a
School of Management and Economics, Beijing Institute of Technology, Beijing 100081,
China
b
Center for Energy and Environmental Policy Research, Beijing Institute of Technology,
Beijing 100081, China
c
Beijing Key Lab of Energy Economics and Environmental Management, Beijing, 100081,
China
d
Sustainable Development Research Institute for Economy and Society of Beijing, Beijing
100081, China
e
Collaborative Innovation Center of Electric Vehicles in Beijing, Beijing 100081, China
f
College of Management, Research Institute of Business Analytics and Supply Chain
Management, Shenzhen University, Shenzhen 518060, China
g
School of International Trade and Economics, University of International Business and
Economics, China
h
School of Management Science and Engineering, Nanjing University of Information
Science and Technology (NUIST), No.219 Ningliu Road, Nanjing City, Jiangsu Province,
China
Corresponding authors. E-mail addresses: [email protected] (M. Irfan), [email protected] (Y. Hao),
[email protected] (M. Ikram), [email protected] (H. Wu), [email protected] (R.
Akram), [email protected] (A. Rauf)
Abstract
1
observed that beliefs about the benefits of RE and environmental concern have insignificant
effects. The outcomes of this study can assist policy makers, experts and consumers in
understanding renewable energy consumption and gaining awareness about environmental
problems while simultaneously improving environmental sustainability practices.
Keywords
1. Introduction
Due to the recent economic growth and increasing population, energy demand has
increased tremendously. Many developing countries, including Pakistan, still rely on fossil
fuels for energy generation. Nonetheless, due to their high prices and adverse
environmental effects, fossil fuels can no longer be depended on as a primary energy source
(Iqbal et al., 2018). Governments are seeking economical and sustainable sources to resolve
the existing energy crisis and monitor the current economic and environmental situation
(Merino et al., 2020; Ikram et., 2019). The change from traditional forms of energy
generation to sustainable sources is due to the need for RE production and consumption of
the public sector and regulatory bodies (Liu et al. 2013). Environmental degradation and
climate vulnerability have led policy makers to realize other possible methods of energy
production to minimize fossil-fuel-based carbon footprints (Azapagic and Stichnothe,
2011).
Various countries have taken initiatives to increase the share of RE in their overall
energy composition (Ikram et al., 2020). RE is considered a true alternative to traditional
energy sources due to its decreasing costs throughout the world (Irfan et al., 2020a). RE
programs are believed to enhance residents' quality of life in various ways. First, RE
sources are likely to reduce emissions from air pollution and greenhouse gas (GHG)
(Rehman et al., 2020; Irfan et al., 2019a), thus improving people's health. Second, RE
penetration creates new jobs in the local population and directly promotes the domestic
economy (Ram et al., 2020). Some RE sources are slightly costly, as in the case of
photovoltaics, in which the cost of such energy generation is higher than that of other RE
and non-RE sources (hydropower and coal). PV panels lose efficiency due to dust and
pollution. The regular cleaning of PV panels, in turn, demands substantial costs (Sharma et
al., 2012). However, due to resource scarcity and the increasing rate of fossil fuel
consumption, thermal energy (generated from coal, oil, and natural gas) is becoming more
expensive (Kåberger, 2018). Shah et al. (2018) assessed the economic feasibility of off-grid
PV solutions for the rural regions of Pakistan and found that the energy generated by off-
grid PV systems only costs Pakistani rupees (PKR) 7.98/kWh, which is much more
economical than traditional energy, which costs PKR 20.79/kWh. Finally, due to
2
technological advancements and the potential for cost reductions, RE is outcompeting non-
RE, providing affordable energy and stabilizing energy costs in the future (Kaygusuz, 2012;
Caspary, 2009).
Several scholars have contributed to the Theory of Planned Behavior (TPB), as some
of them have focused on ―environmental concern‖ to determine consumers' knowledge
about environmental problems and their motivation to solve these problems (Čábelková et
al., 2020; Kim and Choi, 2005), while other groups of researchers have focused on the
―cost of RE‖ and how it affects consumers' decisions (Shakeel and Rahman, 2018;
Klepacka, 2019). Similarly, some scholars have focused on the ―awareness of RE‖ (Sarin et
al, 2018) and ―attitude towards RE‖ (Dalton et al., 2008). Despite the long-standing interest
of researchers, they largely overlooked to examine the novel factors (that this research has
introduced), which might shape public behavior. Consequently, there is a clear room to
identify and analyze these factors, influencing consumers' intention to utilize RE. Contrary
to prior studies, the current research has anticipated all these factors from the viewpoint of
3
considering RE. In this way, this research has contributed to the existing knowledge base
by bridging all these research gaps.
The contributions of this study are threefold. First, this study fills the research gap by
finding the domestic energy provision and the possible factors encouraging or restricting
Pakistani households from using RE. Second, the behavioral framework of the theory of
planned behavior has been expanded by incorporating three additional factors: perception
of self-effectiveness, beliefs about the benefits of RE, and perception about neighbor's
participation. Third, the current study has extended the research results differently than the
prior studies. For example, as mentioned before, these novel factors have never been
considered as possible influencing factors of RE utilization. Along these lines, the
perception of self-effectiveness is shown to be an important driver in the way of utilizing
RE. Similarly, perceptions about neighbor participation also persist as a significant addition
to the behavioral framework of the theory of planned behavior. In contrast, beliefs about the
benefits of RE have been found to play an insignificant role in RE utilization. We intend to
focus on the general character of RE technologies in this study, as it has a positive
environmental impact but demands a higher participation cost compared with conventional
sources of energy.
Finally, concerning the relevance of the results, though the findings are based on a
survey conducted in a specific geographical location (Pakistan), the implications of these
results indicate the phenomenon of consumers' intention-based factors to accept and utilize
RE. Pakistan has an abundance of RE sources in the form of solar, wind, biomass,
geothermal, and hydroelectric power. With such abundant RE sources, if harnessed
effectively, the country can meet 100% of its current and future energy demand. However,
Pakistan is a developing country and not particularly known for its support of RE due to
several challenges and barriers, including economic, policy, technological, and social
barriers (Irfan et al., 2019b). The country primarily depends on fossil fuels for energy
generation. The national economy has been heavily burdened by imported costly fossil
fuels to generate energy. Pakistan's weak economy cannot withstand such a burden.
Consequently, the country is experiencing severe energy crisis (Solangi, et al., 2019). In
addition, the society in Pakistan is integrated, stipulating that the acts of peers, family, and
neighbors have a significant influence on the beliefs of local dwellers (Shakeel and
Rahman, 2018). Therefore, people have concerns regarding self-effectiveness, neighbor
participation, and the benefits of RE. Being a developing country, it is anticipated that these
novel factors may also exist in other developing countries, along with the prevailing energy
crisis. In this way, the research results obtained in this case study are not case-specific but
rather are transferrable to other countries and emphasize the importance of the effect of
accompanying factors on RE utilization. Consequently, Pakistan would be considered as a
4
representative model for other countries to recognize this phenomenon. Furthermore, the
lessons learned from this study will help other developing countries and emerging
economies when devising strategies and policies regarding RE deployment in their
respective countries.
The rest of the paper is organized as follows. Section 2 presents the literature review.
The methods, research design and hypothesis formulation are reported in Section 3. Section
4 compiles the results and discusses the research findings. Finally, the concluding remarks,
policy implications and limitations of the study are presented in the last section of the
paper.
2. Literature review
There have been few studies directed in Pakistan to examine the intention of residents
to accept and utilize renewable energy generation technologies (RETs). Irfan et al. (2019c)
highlighted that Pakistan is struggling with severe energy crisis and that off-grid solar
power is the best possible solution for overcoming the prevailing energy crisis in the
country. Wang et al. (2020) assessed the various RE sources in the country to diversify its
energy generation from fossil fuels to that from RE. The above authors found that there is
enormous potential for wind, solar, and biomass energy in the country. Akhtar et al. (2018)
5
conducted a study to assess the supply and future growth of various RE sources and
uncovered that Pakistan has the potential to generate 150,000 MW of wind energy, 56,000
MW of hydroelectricity, and 50,000 MW of solar energy respectively.
Raza et al. (2020) proposed policy guidelines for developing RETs in Pakistan's rural
regions. Mirza (2015) documented residents' perceptions and satisfaction with different
RETs. The research results specify that local dwellers have a high acceptance of solar
energy. Abdullah et al. (2017) conducted a survey to determine the public willingness to
accept a solar home system (SHS), the outcomes of which indicated that 81% of
participants exhibited a high willingness to pay for SHSs. However, there are multiple
barriers that hinder residents from using SHSs, such as low awareness, risk, and the high
price of solar panels.
This literature review helps in understanding consumers' awareness and their intention
regarding RE as a sustainable energy source to mitigate climate change. Next, we review
the research framework and formulate hypotheses leading up to the analysis and
presentation of the results in the subsequent sections.
3. Methods
6
Consequently, we have expanded the TPB by including three integral factors such as
the perception of self-effectiveness, beliefs about the benefits of RE, and perception about
neighbor participation. The perception of self-effectiveness is defined as ―one's ability to
effectively perform a certain action/behavior, and this particular action/behavior will be
appreciated by society‖. The intention and behavior of a person are directly and indirectly
affected by the perception of self-effectiveness. Similarly, beliefs about the benefits of RE
are defined as ―an individual's evaluation of the positive outcomes of consuming RE in the
form of climate mitigation, reducing air pollution and improving the health conditions of
people‖. The perception of neighbor participation refers to ―consumers' intentions and how
they are shaped by what a neighbor does‖.
We have assessed consumer behavior by assessing consumer intention to participate in
the utilization of RE. The modeling framework of this study is presented in Fig. 1. The
analytical framework in accordance with existing and new variables will comprehensively
assist in examining consumer intention to utilize RE.
PSE ARE
H5
ECN Intention to PNP
utilize RE
BCRE BBRE
Fig. 1. Modeling framework indicating the influencing factors of consumer intention to utilize RE.
Notes: PSE: Perception of self-effectiveness; ARE: Awareness; ECN: Environmental concern; PNP:
Perception about neighbor participation; BCRE: Beliefs about the cost of RE utilization; BBRE: Beliefs
about the benefits of RE.
H1: There is a positive relationship between the PSE and consumer intention to utilize RE.
8
(Hartmann and Apaolaza-Ibáñez, 2012). Considering these results, the choice of buyers to
use RE is likely to be positively influenced by ECN and devised as follows:
H2: There is a positive relationship between ECN and consumer intention to utilize RE.
H3: There is a positive relationship between BCRE and consumer intention to utilize RE.
3.2.4. Awareness
Studies have shown that social norms influence RE acceptance. The societal pressure
to act in a specific manner is always perceived (Steg et al., 2015). Perception about
neighbor participation (PNP) is regarded as the influence on RE use by neighbors and has
been reported as the main influencer of consumers' energy conservation intentions. Opiyo
et al. (2019) observed a positive association between perceptions about neighbor
participation and residential attitudes toward SHSs. Kosugi et al. (2019) investigated the
influence of the neighborhood on the diffusion of residential PV systems in Japan and
found that neighbors have a significant effect on consumers' beliefs and perceptions, which
shape their decisions regarding the adoption of PV systems. Palm (2017) examined the
influence of peers on the acceptance of small PV systems among Swedish users. The
outcome of their study uncovered that the opinions of neighbors, friends, and family are
important to consumers when adopting PV systems for household purposes. Rai et al.
(2016) found positive links between neighbor involvement and consumer intention
regarding the preservation of energy and the environment. PNP has been unveiled by
Qureshi et al. (2017) as an important motivating factor for residents in accepting RETs. It is
expected that the same can be true in this research and is hypothesized as follows:
H5: There is a positive relationship between PNP and consumer intention to utilize RE.
H6: There is a positive relationship between BBRE and consumer intention to utilize RE.
The study of Liu et al. (2013) was consulted, and its scale items were used to measure
the perception of self-effectiveness. The work of Kaldellis et al. (2012) was considered, and
its scale items associated with environmental concern were extracted. The research of
1
The data on the urban and total population of Pakistan have been obtained from the Worldometers website,
available at https://www.worldometers.info/world-population/pakistan-population/
11
Moula (2013) was chosen to obtain the scale items linked with RE cost and RE benefits.
The study of Alam et al. (2014) was consulted, and its scale items for evaluating RE
awareness were used. The research of Kalkbrenner and Roosen (2016) was considered, and
its scale items for measuring perception about neighbor participation were obtained.
Finally, the work of Shakeel and Rahman (2018) was selected, and its scale items related to
consumer intention were collected. A five-point Likert scale was used to scrutinize all
items, with 1 indicating ―strongly disagree‖ and 5 indicating ―strongly agree‖. An
aggregated result of all scale items was then considered as the projected value of these
variables.
4. Results
12
The summary statistics of the data are analyzed using the mean and standard deviation.
Significant correlations are obtained among variables by using the Pearson correlation test.
The issue of discriminant validity is tested by utilizing the square root of the average
variance extracted (AVE) with the objective of determining the degree to which the
elements of the variables are theoretically not interconnected. It is confirmed that there is
no discriminant validity problem because the square root of the AVE is more than its
correlation to other variables (Irfan et al., 2020b) (see Table 3).
13
PSE 4.10 .594 0.346 0.248 0.171 0.329 0.220 [0.838]
IURE 3.53 .441 0.295 0.568 0.507 0.418 0.723 0.233 [0.743]
Notes: The square root of the AVE is shown in brackets []; M: Mean; SD: Standard deviation; IURE:
Intention to utilize renewable energy.
Cronbach’s Alpha was calculated to check the internal reliability of items. Cronbach's
Alpha values surpassed the minimum threshold value of 0.70 for each variable, as
suggested by Nunnally (1978), indicating that the data are valid and reliable (see Table 4).
Content validity reflects the adequacy of which an individual content domain has been
tested, i.e., whether an instrument is truly an inclusive measure of the studied area. It is
subjective and judgmental in its determination (Nunnally, 1978). Fig. 2 verifies the content
validity of the model because each item was loaded on the corresponding structure.
The test of Composite Reliability (CR) was executed to evaluate the accuracy of each
variable‘s items. Table 4 shows that the CR values for all variables exceed the minimum
accepted value, as recommended by Nunnally (1978). The test of Convergent Validity was
conducted by using the AVE and item loadings to determine the degree to which the items
are theoretically related (Wong, 2013). The outcomes show that the values of the AVE
surpass 0.50, highlighting that the latent variables retained at least 50% variance.
14
ECN4 The environment could be improved by 0.680
using RE
Beliefs about the cost of RE utilization 0.611 0.887 0.893
BCRE1 The utilization of RE creates additional 0.869
costs
BCRE2 Renewables are costly, as a massive 0.953
investment is required for RE projects
BCRE3 The cost of RE consumption is high due to 0.741
substantial installment costs
Awareness of RE 0.569 0.902 0.904
ARE1 I have the awareness that the market is 0.553
providing RE-based solutions
ARE2 I have the awareness about the advantages 0.829
of RE usage
Perception about neighbor participation 0.683 0.937 0.939
PNP1 Neighbor participation encourages me to 0.780
utilize RE
PNP2 Neighbor participation motivates me to 0.807
utilize RE
Beliefs about the benefits of RE 0.676 0.936 0.937
15
Fig. 2. Measurement model.
The structural model was estimated, and the hypothesized relationships were analyzed
after obtaining valid and reliable measures. As an essential step, the R2 value was computed
to assess the variations in the outcome variable explained by the explanatory variables.
Cohen (2013) suggested that the R2 value should not be less than 0.35. Our analysis shows
that the R2 value is 0.75, which surpasses the threshold value, suggesting considerable
interpretation. To test all relationships proposed in the model, curve estimation and the
SEM algorithm based on covariance were performed, which provided a high F-value,
specifying that the model has linear relationships. A collinearity diagnostic test was
performed to check for a multicollinearity problem. Field (2009) indicated that the value of
the Variance Inflation Factor (VIF) should not exceed 10. The results show that the
multicollinearity problem does not exist in the model since the VIF values of all variables
did not exceed the recommended value.
16
The schematic representation of SEM is presented in Fig. 3. Table 6 reports the
structural model's goodness-of-fit indices. It is obvious from Table 6 that the values of all
fit indices are within the recommended criterion (Lucianetti et al., 2018), denoting that the
data have been absolutely incorporated by the model. From the obtained results, the path
coefficient value (β) of the relationship between the PSE and IURE is 0.70, with a p-value
< 0.001, indicating that consumers' IURE is significantly and positively affected by their
PSE. Thus, hypothesis 1 (H1) was accepted. It was found that BCRE have a negative effect
on consumers' IURE, as the path coefficient value (β) of the relationship between BCRE
and IURE is -0.00, with a p-value < 0.05. Therefore, we accepted hypothesis 2 (H2).
Similarly, the path coefficient values (β) of the relationship between ARE and IURE and
between PNP and IURE are 0.10 and 0.09, with p-values < 0.01 and < 0.05, respectively.
The results reveal that consumers' IURE is significantly affected by ARE and PNP. Thus,
hypotheses 4 (H4) and 5 (H5) were accepted. In contrast, the path coefficients of the
relationships between ECN and IURE and between BBRE and IURE failed to support
hypotheses 2 (H2) and 6 (H6), respectively. As a result, ECN and BBRE do not have a
significant effect on consumers' IURE, and therefore, hypotheses 2 (H2) and 6 (H6) are
rejected. Table 7 reports the structural paths and hypothesis validity.
Fig. 3. Schematic representation of SEM. Smooth lines indicate significant paths, and broken lines indicate
insignificant paths. ***, **, and * represent statistical significance at the 0.001, 0.01, and 0.05 levels,
respectively.
17
Table 5. Kaiser–Meyer–Olkin (KMO) and Bartlett's tests.
KMO and Bartlett's test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.919
Bartlett's Test of Sphericity Approx. Chi-square 9,958.990
df 57
Sig. 0.000
Notes: Cumulative variance explained: 63.97%; df: Degrees of freedom; Sig: Significance.
18
Notes: Significance level (***p < 0.001, **p < 0.01, and *p < 0.05).
5. Discussion
The findings of our study demonstrate that the PSE has a positive and significant
effect on consumers' IURE and are consistent with prior investigations (Wojuola and Alant,
2017; Zhang et al., 2011). Energy efficiency, energy security, and the eco-friendly character
of RE could be the potential drivers that encourage residents to utilize RE. Out of various
available energy generation sources, such as oil-fired power generators and urgent power
supply (UPS) in Pakistan, the utilization of PV for domestic usage is more convenient and
simple and has a longer life duration. Buyers' technology evaluation and understanding of
its use would help develop confidence in RETs as significant dynamics in the coming
years.
It is commonly understood that RETs help improve the environment and can reduce
carbon production discharges. Prior studies have investigated how the resident intention to
utilize RE is affected by ECN (Kalkbrenner and Roosen, 2016; Wang et al., 2018). Based
on these findings, it was anticipated that similar outcomes may occur in Pakistan as well.
The results of our study, however, show that ECN does not have a significant influence on
consumers' IURE. The potential cause could be connected to the vital desire for which
people buy such power generation solutions. In addition, unlike governments who value
climate vulnerability problems, control carbon emissions, and expect technology to
genuinely substitute for the reduction in energy prices, achieve long-term environmental
benefits, and gradually contribute to environmental improvement, residents in Pakistan
focus less on climate issues and pollution bottlenecks during their purchase decisions
(Shakeel et al., 2018; Ikram et al., 2019). The absence of a strong policy mechanism is one
of the primary reasons for this kind of behavior (Irfan et al., 2020b). The Pakistani
government seldomly makes it easier for people to have awareness about environmental
problems, their obligations, and the active role they can play in promoting the environment.
19
supposition because cost has a negative impact on consumers' IURE. The findings of prior
studies endorsed our results, as Sardianou and Genoudi (2013) and Iskin et al. (2013)
reported that cost is a significant hurdle to RE adoption. Moreover, Komendantova and
Yazdanpanah (2017) reported that this high cost often influences the consumer intention
and discourages RETs' acceptance.
The results reveal that awareness has a positive and significant impact on consumers'
IURE, specifying that residents with a good knowledge of RE are more likely to have a
positive attitude toward it and tend to utilize it. These results are in accordance with the
findings of a previous study (Ali et al., 2019). Similarly, Abdullah et al. (2017) found that
awareness positively affects consumer intention to use RE. The possible reason is that
residents have awareness of RE and the advantages it offers compared with conventional
energy sources. Due to energy crises, the majority of residents are becoming aware that RE
use may resolve these crises and ultimately fix the energy shortage problems. Consumer
awareness about RE technology, markets, and support for installation is rapidly increasing,
which will be useful in the upcoming years.
The previous findings uncover that the PNP has an encouraging effect on consumers'
IURE. Our results are coherent with previous findings (Fischer and Sauter, 2004). Kosugi
et al. (2019) reported that resident intention to adopt PV systems is positively affected by
their PNP. In a developing country with scarce resources such as Pakistan, the social
system is very integrated, and the actions of friends, family, neighbors, peers, and society
have a significant effect on decision making (Shakeel and Rahman, 2018). The former
knowledge of peers about using RE might affect the behavior of residents in a manner in
which a pleasant experience enables RE acceptance, whereas an unpleasant experience has
a negative impact on buyer intention. These findings signify that the PNP plays a
significant role during RE purchase decisions.
The findings of the study reported that consumers' BBRE has no substantial effect on
their intention to use RE. These outcomes showed that residents' buying behaviors are
based on their positive belief of the benefits about a particular product they want to
purchase (Stigka, 2014). If residents are aware of the perceived benefits of RE use, then
they would accept it. Yasmin and Grundmann (2019) reported that citizens may not have
adequate knowledge about the benefits of RETs, which is the major barrier to RE adoption.
However, during RE deployment in the country, the Pakistani government has not
20
promoted the comprehensive benefits of RE, and citizens still favor conventional energy
sources, which are inexpensive in comparison to RETs. Furthermore, residents' belief in
RETs is limited; therefore, RE acceptance is at its preliminary phase in the country.
6. Conclusions
This study examines the impact of influencing factors on consumer intention to accept
and use RE. Possible factors have been addressed in this analysis that may inspire or
prevent people from using RE. By incorporating three novel and integral factors (the
perception of self-effectiveness, beliefs about the benefits of RE, and perception about
neighbor participation), this study has expanded the theoretical framework of the TPB to
comprehensively analyze the factors that might shape public behavior regarding RE
acceptance and utilization, which is the major contribution of this study. In the four large
cities of Pakistan, an inclusive survey was arranged, and data analysis was performed using
the SEM. The research results disclose interesting findings with significant policy proposals
and decision-making insights. Consumers' IURE is positively and significantly influenced
by their awareness, perception of self-effectiveness, and perception about neighbor
participation. Conversely, it is negatively influenced by beliefs about the cost of RE
utilization. On the other hand, beliefs about RE benefits and environmental concern do not
have significant influences on consumer intention.
This study serves as a useful guide for the policy makers, organizations, and
stakeholders involved in the RETs business. Based on the research findings, it is
recommended that the importance of mitigating climate change, saving energy, and making
eco-friendly energy supply choices urgently needs to be stressed. Public awareness of
environmental problems and the benefits offered by RE to address these problems should
be increased by all stakeholders, such as the government, NGOs, and public and private
institutions. This can be accelerated by organizing climate and environment-related
awareness-raising workshops and campaigns at the state level. The government should
conduct awareness sessions on RE utilization and acceptance. Almost all RE development
projects are capital-intensive and require high initial investment, i.e., solar energy parks,
wind power plants, biomass plants, and hydropower projects. Therefore, the government
should provide developers with simple and long-term financial support. A unique loan
quota should be recommended to banks and other monetary organizations for RE
development programs. To encourage national and multinational companies to invest in RE
programs, the interest rate should be lowered. The findings show that the beliefs of citizens
regarding RE costs have a negative impact on their IURE. Therefore, the Pakistani
government should introduce subsidy schemes to encourage domestic consumers to use RE.
Pakistan has an integrated social system, denoting that there is a deep influence of the
actions of friends, family, neighbors, and society on consumers' minds. Social standards
should therefore be reshaped by enabling residents to choose RE over conventional energy
21
sources. Public cooperation should be enhanced to authenticate that the national policy
targets of integrating RE in country's energy portfolio are generating the desired outcomes.
Enterprises dealing with RE development should substitute old marketing tactics with novel
business concepts to fully commercialize RETs. A robust policy mechanism is necessary to
improve consumer intention and public acceptance of RE in the long run. The government
must replace the old energy policies that are typically intended for traditional energy
sources with new and transparent policies to quickly deploy RE in the country.
The off-grid RE system is an effective and appropriate technology. The system could
benefit individuals, as the shutdown of electricity during the summer season lasts 8-10
hours in urban areas and 14-18 hours in rural areas in Pakistan. R&D is also an essential
value-adding component of the renewable sector. At the local level, continuous R&D
activities can improve production facilities, which in turn would minimize production costs
and the reliance on foreign markets.
The current study also has some limitations that should be taken into account when
conducting further research in this area. First, the authors did not measure attitude toward
RE, which is an important factor in behavioral studies. It would produce better results if
this factor was analyzed. Second, four large cities were considered for data collection
purposes, and rural areas were not included. Throughout urban and rural areas,
socioeconomic characteristics such as income, awareness, and education can differ
considerably. Future researchers can tackle this limitation by taking inputs from rural
dwellers in addition to urban dwellers. Finally, it could be interesting to analyze the
relationship between awareness and beliefs about the benefits of RE, which the current
study did not address; thus, future research could be conducted on this relationship.
4. Dr. Haitao Wu
22
School of Management and Economics, Beijing Institute of Technology, Beijing 100081,
China
Acknowledgements
We are very grateful to the Editor-in-Chief Prof. Adisa Azapagic and four anonymous
reviewers for their detailed and constructive comments. This study is supported by the
National Natural Science Foundation of China (71761137001, 71403015, 71521002), the
Beijing Natural Science Foundation (9162013), the key research program of the Beijing
Social Science Foundation (17JDYJA009), the National Key Research and Development
Program of China (2016YFA0602801, 2016YFA0602603), and the Special Fund for Joint
Development Program of the Beijing Municipal Commission of Education.
References
Aitken M. Wind power and community benefits: Challenges and opportunities. Energy
Policy 2010;38(10):6066–75.
Ajzen I. The theory of planned behavior. Organizational behavior and human decision
processes. 1991;50(2):179–211.
Akhtar J, Yaqub MI, Iqbal J, Sheikh N, Saba T. Way forward in meeting energy challenges
in Pakistan. International Journal of Ambient Energy. 2018;39(8):904–8.
Alam SS, Hashim NH, Rashid M, Omar NA, Ahsan N, Ismail MD. Small-scale households
renewable energy usage intention: Theoretical development and empirical settings.
Renew Energy 2014;68:255–63.
Ali, G., Yan, N., Hussain, J., Xu, L., Huang, Y., Xu, S. and Cui, S. Quantitative assessment
of energy conservation and renewable energy awareness among variant urban
communities of Xiamen, China. Renew Sustain Energy Rev 2019;109:230–38.
Al-Marri W, Al-Habaibeh A, Watkins M. An investigation into domestic energy
consumption behaviour and public awareness of renewable energy in Qatar. Sustain
Cities Soc 2018;41:639–46.
Awadh AI, Hassali MA, Al-lela OQ, Bux SH, Elkalmi RM, Hadi H. Immunization
knowledge and practice among Malaysian parents: a questionnaire development and
pilot-testing. BMC Public Health 2014;14(1):1107.
23
Azapagic A, Stichnothe H. Life cycle sustainability assessment of biofuels. InHandbook of
biofuels production 2011 Jan 1 (pp. 37-60). Woodhead Publishing.
Batley SL, Colbourne D, Fleming PD, Urwin P. Citizen versus consumer: challenges in the
UK green power market. Energy Policy 2001;29(6):479-87.
Batley SL, Fleming PD, Urwin P. Willingness to pay for renewable energy: Implications for
UK green tariff offerings. Indoor Built Environ 2000;9(3-4):157-70.
Čábelková I, Strielkowski W, Firsova I, Korovushkina M. Public Acceptance of Renewable
Energy Sources: a Case Study from the Czech Republic. Energies 2020;13(7):1742.
Caspary G. Gauging the future competitiveness of RE in Colombia. Energy. Econ
2009;31(3):443-449.
Chen, C.F., Knight, K., Energy at work: Social psychological factors affecting energy
conservation intentions within Chinese electric power companies. Energy Res Soc Sci
2014;4:23-31.
Cohen J. Statistical power analysis for the behavioral sciences. Academic press; New York,
p 490, 2013.
Dalton GJ, Lockington DA, Baldock TE. A survey of tourist attitudes to renewable energy
supply in Australian hotel accommodation. Renew Energy 2008;33(10):2174–85.
Devine‐Wright P. Beyond NIMBYism: towards an integrated framework for understanding
public perceptions of wind energy. Wind Energy: Int J Prog Appl Wind Power Convers
Technol 2005;8(2):125-39.
Devine-Wright P. Reconsidering public attitudes and public acceptance of renewable energy
technologies: a critical review. Beyond Nimbyism: a multidisciplinary investigation of
public engagement with renewable energy technologies. 2007;15.
Düştegör D, Sultana N, Felemban N, Al-Qahtani D. Public acceptance of RE and Smart-
Grid in Saudi Arabia. In 2015 IEEE 8th GCC Conference & Exhibition (pp. 1-6). IEEE.
2015.
Etikan I, Musa SA, Alkassim RS. Comparison of convenience sampling and purposive
sampling. American J Theor Appl Stat 2016;5(1):1–4.
Field A. Discovering statistics using SPSS. SAGE Publications Ltd, London, 2009;166–81.
Fischer C, Sauter R. Users as pioneers: Transformation in the electricity system, microCHP
and the role of the users. In: Proceedings Berlin Conference on Human Dimensions of
Global Environmental Change 2004 (pp. 319-337).
Gordon N. Sustainable information technology awareness. Innov Teach Learn Inform
Comput Sci 2010;9(2):1–4.
Hagen B, Pijawka D. Public perceptions and support of renewable energy in North America
in the context of global climate change. Int J Disaster Risk Sci 2015;6(4):385–98.
Hair Jr JF, Sarstedt M, Hopkins L, Kuppelwieser VG. Partial least squares structural
equation modeling (PLS-SEM). Eur Bus Rev 2014;26:106–21.
Hamilton LC, Bell E, Hartter J, Salerno JD. A change in the wind? US public views on
renewable energy and climate compared. Energy Sustain Soc 2018;8(1):11.
Hansla A, Gamble A, Juliusson A, Gärling T. Psychological determinants of attitude
towards and willingness to pay for green electricity. Energy policy 2008;36(2):768-74.
Hartmann P, Apaolaza-Ibáñez V. Consumer attitude and purchase intention toward green
energy brands: The roles of psychological benefits and environmental concern. J Bus
Res 2012;65(9):1254–63.
Hosseini A, Zolfagharzadeh MM, Asghar Sadabadi A, Aslani A, Jafari H. 2018. Social
Acceptance of RE in Developing Countries: Challenges and Opportunities. Distrib
Gener Altern Energy 2018;33(1):31-48.
Huijts NM, Molin EJ, Steg L. Psychological factors influencing sustainable energy
technology acceptance: A review-based comprehensive framework. Renew Sustain
Energy Rev 2012;16(1):525–31.
Ikram M, Zhang Q, Sroufe R, Shah SZ. Towards a sustainable environment: the nexus
between ISO 14001, renewable energy consumption, access to electricity, agriculture
and CO2 emissions in SAARC countries. Sustain Prod Consum 2020;22:218–30.
Ikram M, Zhou P, Shah SA, Liu GQ. Do environmental management systems help improve
corporate sustainable development? Evidence from manufacturing companies in
Pakistan. J Clean Prod 2019;20;226:628–41.
24
Iqbal T, Dong CQ, Lu Q, Ali Z, Khan I, Hussain Z, Abbas A. Sketching Pakistan's energy
dynamics: Prospects of biomass energy. J Renew Sustain Energy 2018;10(2):023101.
Irfan M, Zhao ZY, Ahmad M, Mukeshimana MC. Critical factors influencing wind power
industry: A diamond model based study of India. Energy Rep 2019a;5:1222-35.
Irfan M, Zhao ZY, Ahmad M, Mukeshimana MC. Solar energy development in Pakistan:
Barriers and policy recommendations. Sustainability 2019b;11(4):1206.
Irfan M, Zhao ZY, Ahmad M, Rehman A. A techno-economic analysis of off-grid solar PV
system: a case study for Punjab province in Pakistan. Processes 2019c;7(10):708.
Irfan M, Zhao ZY, Li H, Rehman A. The influence of consumers‘ intention factors on
willingness to pay for renewable energy: a structural equation modeling approach.
Environ Sci Pollut Res 2020b:1-5.
Irfan M, Zhao ZY, Panjwani MK, Mangi FH, Li H, Jan A, Ahmad M, Rehman A. Assessing
the energy dynamics of Pakistan: Prospects of biomass energy. Energy Rep 2020a;6:80–
93.
Irfan, M., Zhao, Z.Y., Mukeshimana, M.C., Ahmad, M., 2019d. Wind Energy Development
in South Asia: Status, Potential and Policies. In: 2019 2nd International Conference on
Computing, Mathematics and Engineering Technologies (iCoMET) (pp. 1-6). IEEE.
2019d.
Iskin I, Taha RA, Daim TU. Exploring the adoption of alternative energy technologies: a
literature review. Int J Sustain Soc 2013;5(1):43–61.
Islam T. Household level innovation diffusion model of photo-voltaic (PV) solar cells from
stated preference data. Energy Policy 2014;65:340–50.
Jean RJ, Deng Z, Kim D, Yuan X. Assessing endogeneity issues in international marketing
research. Int Mark Rev 2016;33(3):483–12.
Kåberger T. Progress of renewable electricity replacing fossil fuels. Glob Energy
Interconnect 2018;1(1):48-52.
Kaiser HF. An index of factorial simplicity. Psychometrika 1974; 39(1):31–36.
Kaldellis JK, Kapsali M, Katsanou E. Renewable energy applications in Greece—What is
the public attitude?. Energy Policy 2012;42:37–48.
Kalkbrenner BJ, Roosen J. Citizens‘ willingness to participate in local renewable energy
projects: The role of community and trust in Germany. Energy Res Soc Sci 2016;13:60–
70.
Karlstrøm H, Ryghaug M. Public attitudes towards renewable energy technologies in
Norway. The role of party preferences. Energy Policy 2014;67:656–63.
Kaufmann HR, Panni MF, Orphanidou Y. Factors affecting consumers' green purchasing
behavior: An integrated conceptual framework. Amfiteatru Econ J 2012;14(31):50–69.
Kaygusuz K. Energy for sustainable development: A case of developing countries. Renew
Sustain Energ Rev 2012;16(2):1116-26.
Khambalkar VP, Katkhede SS, Dahatonde S, Korpe ND, Nage SM. Renewable energy: an
assessment of public awareness. Int J Ambient Energy 2010;31(3):133–42.
Kim Y, Choi SM. Antecedents of green purchase behavior: An examination of collectivism,
environmental concern, and PCE. ACR North American Advanc 2005;592–99.
Klepacka AM, Florkowski WJ, Meng T. Clean, accessible, and cost-saving: Reasons for
rural household investment in solar panels in Poland. Resour Conserv Recycl
2018;139:338-50.
Klepacka AM. Significance of renewable energy sources in sustainable development.
Roczniki (Annals). 2019;(1230-2019-3873).
Komendantova N, Yazdanpanah M. Impacts of human factors on willingness to use
renewable energy sources in Iran and Morocco. Environ Energy Econ Res
2017;1(2):141–52.
Kostakis I, Sardianou E. Which factors affect the willingness of tourists to pay for
renewable energy?. Renew Energy 2012;38(1):169–72.
Kosugi T, Shimoda Y, Tashiro T. Neighborhood influences on the diffusion of residential
photovoltaic systems in Kyoto City, Japan. Environ Econ Policy Stud 2019;21(4):477–
505.
Lee CY, Heo H. Estimating willingness to pay for renewable energy in South Korea using
the contingent valuation method. Energy Policy 2016;94:150–6.
25
Liu W, Wang C, Mol AP. Rural public acceptance of renewable energy deployment: The
case of Shandong in China. Appl Energy 2013;102:1187-96.
Lopes, J.R.N., de Araújo Kalid, R., Rodríguez, J.L.M. and Ávila Filho, S., 2019. A new
model for assessing industrial worker behavior regarding energy saving considering the
theory of planned behavior, norm activation model and human reliability. Resour
Conserv Recycl 2019;145:268-278.
Lucianetti L, Jabbour CJ, Gunasekaran A, Latan H. Contingency factors and complementary
effects of adopting advanced manufacturing tools and managerial practices: Effects on
organizational measurement systems and firms' performance. Int J Prod Econ
2018;200:318–28.
Majhi R, Banerjee A. Journal of Environmental Accounting and Management. J Environ
Account Manag 2019;7(3):279–90.
McEachan RR, Conner M, Taylor NJ, Lawton RJ. Prospective prediction of health-related
behaviours with the theory of planned behaviour: A meta-analysis. Health Psychol Rev
2011;5(2):97-144.
McGowan F, Sauter R. Public opinion on energy research: a desk study for the research
councils. SPRU, University of Sussex, Sussex Energy Group. 2005.
Merino I, Herrera I, Valdés H. Environmental Assessment of Energy Scenarios for a Low-
Carbon Electrical Network in Chile. Sustainability 2019;11(18):5066.
Mirza B. Energy poverty and the perception of, and satisfaction with, renewable energy
technologies: The case of solar villages in Pakistan. In: Sustainable Access to Energy in
the Global South 2015 (pp. 113–27). Springer, Cham.
Mohandes N, Sanfilippo A, Al Fakhri M. Modeling residential adoption of solar energy in
the Arabian Gulf Region. Renew Energy 2019;131:381–9.
Mohsin M, Abbas Q, Zhang J, Ikram M, Iqbal N. Integrated effect of energy consumption,
economic development, and population growth on CO2 based environmental
degradation: a case of transport sector. Environ Sci Pollut Res 2019;26:32824–35.
https://doi.org/10.1007/s11356-019-06372-8
Moula MME, Nyári J, Bartel A. Public acceptance of biofuels in the transport sector in
Finland. I J Sustain Built Environ 2013;6(2):434-441.
Musall FD, Kuik O. Local acceptance of renewable energy—A case study from southeast
Germany. Energy Policy 2011;39(6):3252–60.
Ndebele T. Assessing the potential for consumer-driven renewable energy development in
deregulated electricity markets dominated by renewables. Energy Policy
2020;136:111057.
Novikova SI, Richman DM, Supekar K, Barnard-Brak L, Hall D. NDAR: A model federal
system for secondary analysis in developmental disabilities research. InInternational
review of research in developmental disabilities 2013 Jan 1 (Vol. 45, pp. 123-153).
Academic Press.
Nunnally JC. Psychometric Theory, McGraw-Hill, New York, NY. 1978.
Opiyo NN. Impacts of neighbourhood influence on social acceptance of small solar home
systems in rural western Kenya. Energy Res Soc Sci 2019;52:91–8.
Osborne JW, Costello AB. Sample size and subject to item ratio in principal components
analysis. Pract Assess Res Eval 2004;9(1):11.
Palm A. Peer effects in residential solar photovoltaics adoption—A mixed methods study of
Swedish users. Energy Res Soc Sci 2017;26:1–10.
Paravantis JA, Stigka E, Mihalakakou G, Michalena E, Hills JM, Dourmas V. Social
acceptance of renewable energy projects: A contingent valuation investigation in
Western Greece. Renew Energy 2018;123:639-51.
Parkinson J, David P, Rundle‐Thiele S. Self‐efficacy or perceived behavioural control:
Which influences consumers' physical activity and healthful eating behaviour
maintenance?. J Consum Behav 2017;16(5):413–23.
Procter L, Angus DJ, Blaszczynski A, Gainsbury SM. Understanding use of consumer
protection tools among Internet gambling customers: Utility of the Theory of Planned
Behavior and Theory of Reasoned Action. Addict behav 2019;99:106050.
Qureshi TM, Ullah K, Arentsen MJ. Factors responsible for solar PV adoption at household
level: A case of Lahore, Pakistan. Renew Sustain Energy Rev 2017;78:754–63.
26
Rai V, Reeves DC, Margolis R. Overcoming barriers and uncertainties in the adoption of
residential solar PV. Renew Energy 2016;89:498–05.
Ram M, Aghahosseini A, Breyer C. Job creation during the global energy transition towards
100% renewable power system by 2050. Technol Forecast Soc Change.
2020;151:119682.
Raza, M.Y., Wasim, M. Sarwar, M.S. Development of Renewable Energy Technologies in
rural areas of Pakistan. Energy Sourc Part A: Recover Util Environ Eff 2020;42(6):740–
60.
Raza, M.Y., Wasim, M. Sarwar, M.S. Development of Renewable Energy Technologies in
rural areas of Pakistan. Energy Sourc Part A: Recover Util Environ Eff 2020;42(6):740–
60.
Rehman E, Ikram M, Feng MT, Rehman S. Sectoral-based CO2 emissions of Pakistan: a
novel Grey Relation Analysis (GRA) approach. Environ Sci Pollut Res 2020;27:29118–
29. https://doi.org/10.1007/s11356-020-09237-7
Sardianou E, Genoudi P. Which factors affect the willingness of consumers to adopt
renewable energies?. Renew Energy 2013;57:1–4.
Shah SA, Valasai GD, Memon AA, Laghari AN, Jalbani NB, Strait JL. Techno-economic
analysis of solar pv electricity supply to rural areas of Balochistan, Pakistan. Energies
2018;11(7):1777.
Shakeel SR, Rahman SU. Towards the establishment of renewable energy technologies'
market: An assessment of public acceptance and use in Pakistan. J Renew Sustain
Energy 2018;10(4):045907.
Sharma NK, Tiwari PK, Sood YR. Solar energy in India: Strategies, policies, perspectives
and future potential. Renew Sustain Energy Rev 2012;16(1):933-41.
Si, H., Shi, J.G., Tang, D., Wu, G. and Lan, J. Understanding intention and behavior toward
sustainable usage of bike sharing by extending the theory of planned behavior. Resour
Conserv Recycl 2020;152:104513.
Sniehotta FF, Presseau J, Araújo-Soares V. Time to retire the theory of planned behaviour.
Health Psychol Rev 2014;1–7.
Steg L, Perlaviciute G, van der Werff E. Understanding the human dimensions of a
sustainable energy transition. Front Psychol 2015;6:805.
Stigka EK, Paravantis JA, Mihalakakou GK. Social acceptance of renewable energy
sources: A review of contingent valuation applications. Renew Sustain Energy Rev
2014;32:100–6.
Süsser D, Kannen A. ‗Renewables? Yes, please!‘: perceptions and assessment of community
transition induced by renewable-energy projects in North Frisia. Sustain Sci
2017;12(4):563–78.
Vand B, Hast A, Bozorg S, Li Z, Syri S, Deng S. Consumers‘ attitudes to support green
energy: a case study in Shanghai. Energies. 2019;12(12):2379.
Wang B, Wang Q, Wei YM, Li ZP. Role of renewable energy in China‘s energy security
and climate change mitigation: An index decomposition analysis. Renew Sustain Energy
Rev 2018;90:187–94.
Wang Y, Xu L, Solangi YA. Strategic renewable energy resources selection for Pakistan:
Based on SWOT-Fuzzy AHP approach. Sustain Cities Soc 2020;52:101861.
Wojuola RN, Alant BP. Public perceptions about renewable energy technologies in Nigeria.
African J Sci Technol Innov Dev 2017;9(4):399–409.
Wong KK. Partial least squares structural equation modeling (PLS-SEM) techniques using
SmartPLS. Mark Bull 2013;24(1):1–32.
Wüstenhagen R, Wolsink M, Bürer MJ. Social acceptance of renewable energy innovation:
An introduction to the concept. Energy Policy 2007;35(5):2683-91.
Yasmin N, Grundmann P. Adoption and diffusion of renewable energy–The case of biogas
as alternative fuel for cooking in Pakistan. Renew Sustain Energy Rev 2019;101:255–64.
Yue B, Sheng G, She S, Xu J. Impact of Consumer Environmental Responsibility on Green
Consumption Behavior in China: The Role of Environmental Concern and Price
Sensitivity. Sustainability 2020;12(5):2074.
Yun S, Lee J. Advancing societal readiness toward renewable energy system adoption with a
socio-technical perspective. Technol Forecast Soc Change 2015;95:170-81.
27
Zhang Y, Yu Y, Li T, Zou B. Analyzing Chinese consumers‘ perception for biofuels
implementation: The private vehicles owner's investigating in Nanjing. Renew Sustain
Energy Rev 2011;15(5):2299–09.
Zhou D, Shah T, Jebran K, Ali S, Ali A. Acceptance and willingness to pay for solar home
system: Survey evidence from northern area of Pakistan. Energy Reports. 2017;3:54–60.
Zografakis N, Sifaki E, Pagalou M, Nikitaki G, Psarakis V, Tsagarakis KP. Assessment of
public acceptance and willingness to pay for renewable energy sources in Crete. Renew
Sustain Energy Rev 2010;14(3):1088–95.
28
Appendix: Survey questionnaire
Table A.1
Factors influencing consumer intention to utilize RE.
29