Distinct impacts of frugality on the intention to embrace energy-efficient and energy-generating products
Authors: Nagarajan Chitra Devi , Afjal Mohd , Idroes Ghalieb Mutig 
Published: November 2024

Purpose

The purpose of the paper is to analyze the impact of involuntary frugality and deliberate frugality on the household intentions to adopt energy-efficient and energy-generating products. Additionally, the study aims to explore the role of motivation to save as a mediating factor between different types of frugality and the adoption of different kinds of energy products.

Design/methodology/approach

The study involved a survey of 413 households, gathering information through questionnaires from both tier I and tier II urban areas in India. The investigation used confirmatory factor analysis and structural equation modeling with Amos to explore the impact of frugality and also mediating impacts of motivation to save on the correlation between different forms of frugality (involuntary and deliberate) and the desire to acquire energy-efficient and energy-producing goods. This methodology facilitated a thorough examination of how various levels of frugality impact the uptake of sustainable energy solutions, with a specific emphasis on the fundamental motivational drivers behind these choices.

Findings

The study uncovers specific connections between various forms of frugality and the desire to embrace energy-efficient and energy-producing items. Unintentional frugality, characterized by sensitivity to prices, is shown to have a positive correlation with the adoption of energy-efficient devices but a negative association with the intention to adopt energy-generating products. Conversely, intentional frugality, distinguished by deliberate reduction actions, positively impacts the inclination to adopt both energy-efficient and energy-generating products. The results suggest that the mediating impact of motivation for savings varies depending on the type of frugality and the class of energy products being considered, emphasizing the subtle ways in which frugality influences sustainable consumption behaviors.

Research limitations/implications

The contrasting effects of involuntary and voluntary frugality on the adoption of energy-efficient versus energy-generating products highlight the need to explore the underlying psychological and economic mechanisms. Future research should investigate the factors influencing the preferences of price-sensitive and deliberate frugal consumers towards this energy-efficient and energy-generating products.

Social implications

Policymakers should develop specific subsidies and financial strategies for low-income households and incentive programs for conscientious consumers. Educational campaigns emphasizing the benefits of energy-generating goods and creating incentive structures with tax advantages, refunds and financial aid are essential. Companies should continue to emphasize cost savings for energy-efficient appliances and consider leasing or instalment plans for energy-generating products to appeal to price-sensitive consumers.

Originality/value

Literature shows that 82% of Indians prefer frugality to conserve energy through reduced consumption. However, consumer motivations for frugality vary. This study analyses the distinct impacts of involuntary and voluntary frugality on adopting energy-efficient and energy-generating products, offering a nuanced understanding of consumer behavior in sustainability—a topic underexplored in existing research. Additionally, this study investigates the role of the motivation to save as a mediator between frugality and energy product adoption, providing a novel perspective on how different frugality motivations influence different category of energy products.