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Solar energy technology adoption and diffusion by micro, small, and medium enterprises: sustainable energy for climate change mitigation

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Abstract

This research intends to identify influential factors in adopting and diffusing solar energy technology (SET) by micro-, small-, and medium-sized enterprises (MSMEs) in two tehsils of Multan district in Pakistan’s Punjab province. To this end, the influential factors are identified through studying literature surveys and conducting questionnaires. Following that, partial least squares-based path modeling is employed. The results showed that (1) enterprises’ size, perceived SET’s ease of use, and perceived SET’s reliability are the top three driving factors. (2) The perceived SET’s price, perceived level of competition’s pressure, and MSME’s energy cost intensity are the barriers to the adoption and diffusion of SET, while the lack of technical knowledge about SET is a neutral factor. (3) Perceived SET’s price, MSMEs’ energy cost intensity, and enterprises’ size are among the most important factors based on the effect size and path coefficients, while the lack of technical knowledge about SET, preferences of MSMEs’ customers, and eco-labels and green stickers have lower importance. Since the adoption of SET is a rational decision that is concretely dependent on economic incentives, it is recommended to lower the price of SET to scale up the adoption and diffusion of SET by Pakistani MSMEs.

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Source: Authors’ elaboration

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Source: Authors’ elaboration

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Source: Authors’ elaborations

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Fig. 5

Source: Authors’ elaboration based on path modeling results

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All data generated or analyzed during this study are included in this article.

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Funding

This research was partially funded by Guangdong 13th-Five-Year-Plan Philosophical and Social Science Fund (#GD20CGL28); Natural Science Foundation of Guangdong – Guangdong Basic and Applied Basic Research Foundation (#2021A1515011894); Shenzhen Science and Technology Program (# JCYJ20210324093208022); Key Project of National Social Science Foundation of China (# 21AGL014 ).

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Conceptualization: Shoaib Qamar; methodology: Munir Ahmad; formal analysis and investigation: Munir Ahmad; writing—original draft preparation: Shoaib Qamar; writing—review and editing: Bahareh Oryani; funding acquisition: Qingyu Zhang; resources: Qingyu Zhang; supervision: Qingyu Zhang.

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Correspondence to Munir Ahmad or Qingyu Zhang.

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The authors declare no competing interests.

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Responsible Editor: Philippe Garrigues.

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Shoaib Qamar and Munir Ahmad contributed equally and are the joint first authors

Appendix

Appendix

Table 6 Sample of structured questionnaire contents

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Qamar, S., Ahmad, M., Oryani, B. et al. Solar energy technology adoption and diffusion by micro, small, and medium enterprises: sustainable energy for climate change mitigation. Environ Sci Pollut Res 29, 49385–49403 (2022). https://doi.org/10.1007/s11356-022-19406-5

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  • DOI: https://doi.org/10.1007/s11356-022-19406-5

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