Clustering Dutch citizens into behavioural phenotypes to understand green energy investment preferences
• Behavioural biases significantly shape energy investment preferences • Risk and loss aversion lower support for costly, long-term investments • Status quo bias increases reliance on strong policy support • Latent class analysis reveals heterogeneous energy personas • Findings inform targeted policies for household energy transitions People differ in their underlying economic preferences and needs for energy retrofits. Accelerating the energy transition, therefore, requires tailoring personalised solutions for distinct groups of individuals. In this paper, we create behavioural phenotypes of green energy investors in the residential sector of the Netherlands. Using a latent class analysis on a representative sample of 2,245 respondents, we identify four distinct classes of investors: Comfort-driven Rationalists, Financially Driven Rationalists, Policy-driven Environmentalists, and Erratic Choosers . We innovate upon the literature by linking class profiling to economic preferences and behavioural biases, alongside socio-demographic and household characteristics. Our findings can help practitioners design bottom-up tailored behavioural interventions to accelerate the uptake of green energy investments.
Authors
- Julia Blasch (ORCID: https://orcid.org/0000-0002-1082-9272)
- S. Banerjee (ORCID: https://orcid.org/0009-0000-6339-093X)
- W. J. Wouter Botzen (ORCID: https://orcid.org/0000-0002-8563-4963)
- M. Nikoloski
Institutions
- King's College London (GB)
- Technische Hochschule Ingolstadt (DE)
- Vrije Universiteit Amsterdam (NL)
Publication Details
- Journal
- Economics Letters
- Published
- 2025-08-18
- DOI
- https://doi.org/10.1016/j.econlet.2025.112566
- Primary Topic
- Environmental Education and Sustainability
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Nederlandse Organisatie voor Wetenschappelijk Onderzoek