Clustering Dutch citizens into behavioural phenotypes to understand green energy investment preferences

Abstract

People differ in their underlying economic preferences and needs for energy retrofits. Accelerating the energy transition, therefore, requires tailoring personalised solutions for distinct groups of individuals. In this paper, we create behavioural phenotypes of green energy investors in the residential sector of the Netherlands. Using a latent class analysis on a representative sample of 2245 respondents, we identify four distinct classes of investors: Comfort-driven Rationalists, Financially Driven Rationalists, Policy-driven Environmentalists, and Erratic Choosers. We innovate upon the literature by linking class profiling to economic preferences and behavioural biases, alongside socio-demographic and household characteristics. Our findings can help practitioners design bottom-up tailored behavioural interventions to accelerate the uptake of green energy investments.