Cluster analysis of consumer characteristics influencing willingness to pay for green buildings and associated energy-efficient purchases in Taiwan

Abstract

Given the built environment’s central role in driving sustainability, understanding consumer cluster characteristics that shape willingness to pay (WTP) for environmentally friendly built environment technologies is essential for informing effective urban sustainability strategies. This study applies principal component analysis (PCA) to identify the sociodemographic, psychographic and cognitive characteristics of different consumer clusters in Taiwan, and their influence on WTP for green buildings and associated energy-efficient purchases. Data from a comprehensive survey examining variables such as age, gender, income, education, household composition, and environmental knowledge and attitudes were analyzed. Principal component analysis was applied to reduce data dimensionality, followed by k-means clustering to identify distinct consumer clusters. Four clusters with unique characteristics were observed. The cluster with the lowest WTP was composed of low-income, less-educated individuals with low environmental knowledge and the oldest average age. The cluster exhibiting the highest WTP mostly consisted of highly educated, high-income females with high environmental awareness and attitude. The second-ranking WTP was observed in a cluster primarily composed of moderately educated individuals with moderate incomes, high environmental awareness and attitude scores, and living in households with very few or no children or seniors. A family-oriented cluster was also identified, characterized by moderate income, moderate education levels, and large households including children and seniors, ranking third in WTP. Recognizing these distinct cluster characteristics allows for the development of targeted interventions that address specific barriers and motivators within each consumer cluster, thus facilitating the adoption and integration of energy-efficient and sustainable built environment technologies in Taiwan.