Assessing Determinants of Consumers’ Energy Conservation Behavior in Pakistan

Abstract

Excess energy consumption, i.e., fossil fuels has raised serious concerns for the depleting resources of energy regarding energy security, efficiency and reliability and ultimately led to devastating consequences for the global climate. Worldwide key players have paid attention and focus to resolve the issue by free carbon energies and reduction of carbon emission. Alternative strategies have been implemented on the demand side management especially in the electricity domain and power system. Consumers’ energy conservation behavior is identified as one of the most efficient and effective means of reducing energy consumption and thereby reducing emissions. Several studies have investigated energy conservation and its predictors. Different attributes of energy conservation have been identified. This study, carried out in Pakistan, explores the different determinants of “consumers’ energy conservation behavior”. It builds on previous models and examines the influence of socio-psycho demographic variables on consumers’ energy conservation behavior. A systematic literature review is conducted followed by analysis of primary data, gathered from a survey conducted in Pakistan, specifically Islamabad. This study examines the influence and impact of six relevant determinants i.e. income, billpayment, pricing, perceived consumer effectiveness, moral obligation and pro-environmental behavior on their energy conservation behavior in its both dimensions. Data was collected through questionnaire and online tools from eligible participants at homes, universities and parks in Islamabad, Pakistan. Data were analyzed in SPSS tool in six phases and hypotheses were tested which were formulated after the literature review. Descriptive analysis, reliability analysis, factor analysis by principal component analysis, correlation and regression analysis were conducted and also their mediation effect was tested. The findings from the results suggest that all the determinants specifically psychological variables influenced energy conservation behavior i.e. energy curtailment and energy efficiency, albeit each in varying strength. Income does not show to have influenced energy curtailment while bill payment influenced energy curtailment. Energy efficiency is not influenced by income as well as bill payment. Perceived consumer effectiveness is the most significant and influential predictor of energy curtailment (B=0.218, p<.05) followed by bill payment and moral obligation. Moral obligation is the first significant determinant of energy efficiency at (B=0.275, p<.001) and followed by pricing and bill payment. vii The findings of this study have important academic and practical implication and policy implication for consumers and policy makers respectively. Government and private environmental and energy organizations, specifically in Pakistan, would be well advised to use these findings in formulating strategies and developing and designing policies for carbon free green and sustainable energy sources.