5. Conclusion and implication
The present study develops a scale to measure consumers’ GPV with respect to green energy. On the basis of the reliability and validity tests conducted, the scale appears robust and credible. The fact that GPV has been considered a multidimensional second order construct (as opposed to studies that considered GPV as a unidimensional construct) makes the scale all the more reliable as it considers the various dimensions of consumers’ green perceived value. The scale can be used to assess consumers’ perception towards green energy. Such information could be used to formulate strategies that encourage consumers to voluntarily adopt green energy. The proposed scale also emphasizes the emotional and social dimensions of consumer perception. This is a very important aspect of this study. Hitherto, policy makers relied on incentives and subsidies to encourage green energy use which led to increased burden on the exchequer. However, the study reveals that it is not only the financial aspects that lead consumers to decide on adoption of green energy; consumers are also driven by emotional and social considerations. Thus, policy makers could formulate progreen energy programmes and mass messages that appeal to consumers’ sense of responsibility to voluntarily adopt green energy without having to rely on financial incentives. The messages could clearly convey the ability of green energy to reduce the adverse effects of greenhouse gases and fight climate change while reinforcing that efforts of consumers could actually make a difference. A good example of an effort like this being successful is, in April 2015, the Indian Prime Minister, Shri Narendra Modi’s appeal to the Indian citizens that could afford to do so, to forego LPG cylinder subsidy. As a result, 10.25 million citizens voluntarily gave up the subsidy by June 2016. It has also been observed that consumers purchase green energy under the pressure of their respective social groups. Bearing this in mind, policy makers and marketers could establish and reinforce social norm that favours use of green energy. In turn, green energy suppliers should try to emphasize and increase functional benefits of green energy to appeal to greater number of consumers.