Understanding citizen investment in renewable energy communities

This research investigates factors driving citizen participation in renewable energy communities (RECs) using demographically representative surveys including a discrete choice experiment on attributes of RECs and a contingent valuation experiment on intended amounts of investment in RECs in France, Germany, and Poland. We investigate, in particular, whether municipalities can incentivize citizens to invest in RECs by offering to match their investments and examine the effect of small probabilities of losing the entire investment. Further, we analyze the role of preferences, capabilities, and social factors that have not or only scarcely been studied in the context of RECs. Our results provide evidence that matching by the municipality has a positive effect on citizen investment. Further, ruling out even small risks of losing the entire investment may substantially increase citizen participation in RECs. The experiments suggest that investments in RECs are related to willingness to take risks and willingness to take losses. Individual capabilities (i.e. financial literacy, experience), social norms, place identity, and trust in local government also seem to spur citizen investment in RECs.