Consumers would give up their green for greener energy

A new survey from IBM finds that most consumers in developed nations would pay more for eco-friendly energy. The study also found that while consumers want more choices about the type of energy they buy, many are unaware of the range of options available.

Two-thirds of consumers surveyed around the world are willing to pay more for power that could be definitively shown to have lower emissions of greenhouse gases. Australians are most willing to pay a premium for green power, but Americans are most willing to pay a sizable premium, up to an additional 20 percent or more. In contrast, slightly less than half of consumers would pay more for environmentally friendly non-energy products.

"The emergence of climate change as broad public concern has galvanized people to an extent seldom seen for issues involving their energy providers," said Michael Valocchi, Global Energy and Utilities Industry Leader, IBM Global Business Services. "Historically, consumers didn’t care about energy. This survey suggests that they want to engage and make a more personal connection to it.”

The survey is part of a report, “Plugging in the Consumer: Innovating utility business models for the future,” released recently by IBM Global Business Services. The report forecasts how the change in energy customers’ expectations will affect the utility industry’s business model in the next five to ten years and predicts the eventual formation of a participatory network that allows consumers to “plug in” their energy decisions to a degree not seen before.