Consumer preferences for green energy: a discrete choice experiment in Greece

The purpose of this thesis is to investigate consumers’ perceptions of green electricity in Greece using a discrete choice experiment (DCE) methodology. The analysis focuses on how households trade off price and contract characteristics against labelled shares of renewable energy when evaluating retail electricity plans. The study is grounded in Random Utility Theory and employs multinomial logit models, complemented by psychometric indicators and latent class analysis to account for preference heterogeneity among consumers. Survey respondents were presented with hypothetical electricity plans varying in price per kilowatt-hour, renewable energy share, switching bonuses, and price guarantee duration. A total of 338 respondents completed the survey in 2025. The results show that consumers place a positive value on higher shares of renewable energy, although price remains the primary driver of choice. Status quo bias and provider loyalty significantly reduce switching probabilities, while monetary incentives and price guarantees increase the attractiveness of alternative plans, particularly among price-sensitive and risk-averse consumers. Pro-environmental attitudes are positively associated with preferences for higher-renewable plans, with effects varying across consumer segments. Finally, latent class analysis identifies three distinct consumer profiles, highlighting substantial heterogeneity in willingness to pay for renewable energy and the importance of accounting for behavioural frictions in the design of green electricity tariffs and policies.