Understanding the role of non-monetary aspects in promoting citizen investment for the energy transition - An exploratory approach

While Germany demonstrates strong societal support for the energy transition, actual investments in renewable energy projects remain low. This study addresses the research gap concerning financial participation, highlighting non-monetary factors as critical influences on citizens' investment decisions in energy transition technologies. Through a literature review and an online survey of German citizens (n = 895), we analyse how monetary and non-monetary costs and benefits, as well as design preferences, affect financial participation. Our exploratory research reveals that perceived non-monetary costs and benefits along with co-investments may significantly shape investment decisions among German households. However, financial considerations dominate despite citizens' strong support for climate-friendly investments. Although perceptions may differ based on cultural, regulatory, and individual contexts, the findings identify key aspects that transcend national and cultural boundaries. These findings reflect a gap between stated preferences and real actions due to noncoincidence of rewards and costs, a dominance of individual costs over societal ones, and conflicting individual and social interests. The paper concludes with policy implications to enhance citizen engagement in renewable energy investments by emphasizing non-monetary benefits and suggests avenues for further research.