Structural Equation Modeling-Based Consumer’s Intention to Utilize Renewable Energy Technologies: A Case of Pakistan

Abstract

Since the implementation of renewable power generation technologies (RPTs) is a multifaceted and complex procedure influenced by a diverse range of factors, it induces ever evolving traction of researchers to investigate those influence factors. The purpose of this research is to investigate the factors affecting consumers’ intention to utilize RPTs for domestic use in Pakistan. In order to have a better understanding of the behavioral construct of consumers to adopt or prohibit the RPTs, the current study has contributed through augmenting the structure of planned behavior theory by introducing three additional influence factors including relative advantage, environmental knowledge, and lack of access to electricity in remote areas. The findings of the current study are derived from the calculations conducted on primary data compiled from 230 Pakistani households in provincial capitals including Karachi, Lahore, Quetta, and Peshawar, and the federal capital Islamabad through conducting a comprehensive survey. The propositions are examined employing the state of art technique called structural equation modeling (SEM). The statistical findings revealed that, on one hand, the influence factors including subjective norms, attitudinal construct, relative advantage, perceived behavioral control, and lack of access to electricity imparted positive influence on consumers’ intention to utilize RPTs in Pakistan. On the other hand, the cost is found to induce prohibition impact on consumers’ intention to utilize RPTs. Notably, the moral norms, environmental concern, environmental knowledge, and awareness are revealed to impart neutral influence on consumers’ intention to utilize RPTs. Based on the empirical findings, vital and useful policy guidelines are suggested in this study.