Energy Intangibility and Ecological Concerns: What Strategies for Energy Suppliers in the Residential Market?

Abstract

A physical intangibility affects renewable energies (an electron or a molecule, green or not are similar and their circulation is indistinguishable in common distribution networks). These energies also have a high mental intangibility (difficulties in mentally representing the effects of a green energy consumption). Intangibility poses a strategic problem for energy suppliers that is little debated: perceived risks exist for the consumers who wish to control their commitment against global warming and to be in line with his environmental values. This article sets out four strategies available according to the effort of suppliers to meet two key expectations of the individual consumers: tangibility and environmental concern. Some solutions to remove the physical, financial and organizational barriers to tangibility are discussed. The article concludes with the limitations of these solutions and a call to resolve the issue of intangibility under the pressure of growing public concern for global warming.