A public perspective on the adoption of microgeneration technologies in New Zealand: A multivariate probit approach

The growing demand for electricity in New Zealand has led to the construction of new hydro-dams or power stations that have had environmental, social and cultural effects. These effects may drive increases in electricity prices, as such prices reflect the cost of running existing power stations as well as building new ones. This study uses Canterbury and Central Otago as case studies because both regions face similar issues in building new hydro-dams and ever-increasing electricity prices that will eventually prompt households to buy power at higher prices. One way for households to respond to these price changes is to generate their own electricity through microgeneration technologies (MGT). The objective of this study is to investigate public perception and preferences regarding MGT and to analyze the factors that influence people’s decision to adopt such new technologies in New Zealand. The study uses a multivariate probit approach to examine households’ willingness to adopt any one MGT system or a combination of the MGT systems. Our findings provide valuable information for policy makers and marketers who wish to promote effective microgeneration technologies.

► We examine New Zealand households’ awareness level for microgeneration technologies (MGT) and empirically explore the factors that determine people’s willingness to adopt for MGT.
► The households are interested and willing to adopt the MGT systems.
► Noticeable heterogeneity exists between groups of households in adopting the MGT.
► No significant regional difference exists in promoting solar hot water policies.
► Public and private sectors incentives are important in promoting the MGT.