2.

1 Introduction

This chapter reviews existing research on the adoption of renewable energy in

Sunyani's hospitality sector, particularly focusing on hotels and restaurants. It

examines key concepts, theories, and findings related to renewable energy sources,

the challenges and opportunities for adoption, and strategies for overcoming these

challenges. By exploring past studies, this chapter helps to understand the factors

influencing decision-making in the hospitality sector and lays the foundation for

developing a framework for this study.

2.2 Overview of Renewable Energy Sources

The use of renewable energy sources like solar, wind, biomass, and geothermal energy

is crucial for promoting sustainability in cities like Sunyani, especially in the

hospitality sector. These energy sources offer significant benefits, including reducing

carbon emissions, lowering energy costs, and enhancing a business's reputation for

environmental responsibility (International Renewable Energy Agency [IRENA],

2021). Sunyani's abundant sunlight makes solar panels a viable option for hotels and

restaurants seeking to reduce their reliance on non-renewable energy. Although wind

energy is less common in urban areas, it can still be utilized in nearby rural regions to

meet the energy needs of the hospitality industry (U.S. Department of Energy [DOE],

2020; IRENA, 2021). Biomass energy, derived from organic materials, is another

option that assists with waste management while providing energy, particularly in

agricultural areas (IRENA, 2021).

small and medium-sized enterprises (SMEs), the high upfront costs of renewable

energy infrastructure can be a significant barrier (Sawin et al., 2019). Additionally,

there may be a lack of technical expertise to operate and maintain these systems

efficiently (IRENA, 2021). Despite these challenges, the long-term benefits, such as

reduced operational costs and compliance with environmental regulations, make

renewable energy an attractive option for Sunyani's hospitality sector. Local

government policies and incentives can also play a crucial role in supporting this

transition (DOE, 2020; Sawin et al., 2019).

2.3 Energy Consumption in the Hospitality Sector

The hospitality industry consumes a large amount of energy, significantly impacting

both the environment and operational costs. Hotels and restaurants account for 15% of

the commercial sector's global energy consumption (International Energy Agency

[IEA], 2020). In hotels, energy is primarily used for heating, cooling, water heating,

laundry services, lighting, and refrigeration, while in restaurants, cooking,

refrigeration, lighting, and heating, ventilation and air-conditioning(HVAC) systems

are the main energy consumers (Bohdanowicz & Martinac, 2007; Kasim & Ismail,

2012). The amount of energy used in these facilities depends on factors such as the

size and type of the establishment, occupancy rates, operational practices, and the

level of investment in energy-efficient technologies (Bohdanowicz & Martinac,

2007).
In Sunyani, energy consumption patterns in hospitality facilities are influenced by

local factors such as climate, energy resource availability, and economic conditions.

The hot and humid climate necessitates extensive use of air conditioning, particularly

in luxury hotels catering to business and international travelers (Opoku & Alhassan,

2021). Moreover, reliance on conventional energy sources, such as electricity from the

national grid and diesel generators during power outages, contributes to high

operational costs and environmental impacts (Opoku & Alhassan, 2021).

2.4 Comparative Analysis of Energy Consumption Between Different Hospitality

Establishments

Energy consumption varies significantly across different types of hospitality

establishments. Luxury hotels, offering additional amenities like spas, swimming

pools, and extensive food and beverage services, typically consume more energy per

square meter than budget hotels. A survey conducted by Karagiorgas et al. (2006)

found that full-service hotels use an average of 218 kWh per square meter annually,

while limited-service hotels use about 149 kWh (American Hotel and Lodging

Association [AHLA], 2018). In Sunyani, luxury hotels consume around 200 kWh per

square meter annually, while mid-range and budget hotels consume 150 and 100 kWh

per square meter, respectively (Opoku & Alhassan, 2021).

Energy consumption in restaurants also varies based on factors such as the type of

food served, the size of the establishment, and the hours of operation. Fast-food

restaurants, which rely heavily on cooking and refrigeration equipment, typically have
higher energy consumption per square meter. However, fine dining establishments

may have different energy consumption patterns due to their longer operating hours

and greater emphasis on HVAC systems and ambient lighting (Energy Information

Administration [EIA], 2019; AHLA, 2018).

These differences highlight the need for tailored energy management strategies that

consider the unique operational characteristics and energy consumption patterns of

different hospitality establishments. By adopting renewable energy sources like solar

and wind power, Sunyani's hospitality industry can reduce energy costs and

environmental impacts, provided there is sufficient financial support and favorable

regulatory frameworks to facilitate this transition (IRENA, 2021; AHLA, 2018).

Theoretical Review

Assessing the Current Level of Awareness Regarding Renewable Energy Among

Sunyani's Hospitality Businesses

Understanding how much hotels and restaurants in Sunyani know about renewable

energy is essential to determine how likely they are to adopt these technologies.

Awareness is the first step toward integrating renewable energy into their operations.

Ajzen's (1991) Theory of Planned Behavior provides insight into how awareness

impacts the adoption of renewable energy. This theory suggests that people's attitudes,

social pressures, and confidence in their ability to perform a behavior influence their

actions. When hotel and restaurant managers in Sunyani understand the benefits of
renewable energy, they are more likely to have a positive attitude towards adopting it

(Kasim & Ismail, 2012; Ajzen, 1991).

The Resource-Based View (RBV) of the firm, proposed by Barney (1991), highlights

the importance of valuable resources for gaining a competitive advantage. In this

context, renewable energy can be seen as a valuable resource. Businesses that are

aware of the long-term benefits of renewable energy, such as cost savings and a better

reputation, are more likely to invest in these technologies (Barney, 1991; Karagiorgas

et al., 2006).

Despite these efforts, challenges remain in raising awareness about renewable energy.

Bohdanowicz and Martinac (2007) note that many businesses struggle to find accurate

and relevant information about renewable energy (Kasim & Ismail, 2012). Awareness

levels also vary between different types of businesses, with larger establishments

generally being more aware of renewable energy options than smaller, budget hotels

(Kasim & Ismail, 2012; Bohdanowicz & Martinac, 2007).

In summary, awareness is a key factor in whether hotels and restaurants in Sunyani

decide to adopt renewable energy. Theories like the Diffusion of Innovations, the

Theory of Planned Behavior, and the Resource-Based View help explain how

awareness influences this decision. While government and industry efforts have raised

awareness, challenges remain in ensuring all hospitality businesses have the

information they need to consider renewable energy.

Factors Influencing the Willingness of Restaurants and Hotels to Adopt

The willingness of restaurants and hotels to adopt renewable energy is shaped by a

combination of internal and external factors. Internal factors include organizational

culture, management commitment, financial capacity, and technical expertise.

External factors include market conditions, regulatory environment, and technological

availability.

The Theory of Planned Behavior (Ajzen, 1991) provides a useful framework for

understanding these factors. According to this theory, behavior is influenced by

attitudes (positive or negative evaluations of the behavior), subjective norms

(perceived social pressures), and perceived behavioral control (the perceived ease or

difficulty of performing the behavior). In the context of renewable energy adoption,

the attitude of restaurant and hotel managers towards renewable energy is a key

determinant. Subjective norms, such as the expectations of customers, industry peers,

and regulatory bodies, also influence willingness. Perceived behavioral control relates

to the organization's confidence in its ability to implement renewable energy

solutions, which can be influenced by factors like financial resources, access to

technology, and expertise (Kasim & Ismail, 2012).

Economic factors, such as the initial investment cost and anticipated return on

investment, are particularly significant. Many restaurants and hotels operate on thin

profit margins, making them sensitive to upfront costs. However, the availability of
financial incentives, such as tax breaks or subsidies, can enhance willingness by

reducing the perceived financial burden (Kasim & Ismail, 2012). Environmental

consciousness and corporate social responsibility also motivate adoption, especially as

consumers increasingly prefer businesses with sustainable practices (Kasim & Ismail,

2012).

Potential Challenges and Benefits Associated with the Implementation of

Renewable Energy Solutions

Implementing renewable energy solutions in restaurants and hotels presents both

challenges and benefits. The Resource-Based View (RBV) of the firm suggests that

organizations can achieve a competitive advantage by acquiring and managing

valuable, rare, unique, and non-substitutable resources. Renewable energy can be seen

as a strategic resource that provides both economic and reputational advantages

(Barney, 1991; Karagiorgas et al., 2006).

Challenges include the high initial capital investment, which can be a significant

barrier for small and medium-sized enterprises. The technical complexity of

integrating renewable energy systems into existing infrastructures, particularly in

older buildings, is another challenge. Additionally, there is the issue of intermittent

energy supply from renewable sources like solar and wind, which may require

restaurants and hotels to maintain backup systems, thereby increasing costs and

operational complexity (Barney, 1991; Karagiorgas et al., 2006).

However, the benefits of adopting renewable energy can outweigh these challenges.
The long-term cost savings from reduced energy bills, the potential for government

incentives, and the improved public image associated with sustainability are

significant advantages. Furthermore, renewable energy adoption can enhance the

resilience of hospitality businesses by reducing dependence on the national grid and

fossil fuels, which are subject to price volatility and supply disruptions (IRENA,

2021; Kasim & Ismail, 2012).

Empirical Review

Assessing the Current Level of Awareness Regarding Renewable Energy Among

Sunyani's Hospitality Businesses

The level of awareness about renewable energy within the hospitality industry varies

based on geographic location, business size, and access to information. For example,

Bohdanowicz et al. (2011), as cited in Rogers (2003), found that larger hotel chains in

Europe generally have a higher awareness of renewable energy options due to their

established environmental management systems. These businesses often have the

resources to invest in sustainability initiatives, leading to greater awareness of

renewable energy technologies.

In contrast, smaller hotels and restaurants, especially in developing regions like

Sunyani, often exhibit lower awareness levels. Altinay and Hussain (2017), as cited in

Ajzen (1991), observed that small and medium-sized hotels in Northern Cyprus had

limited awareness of renewable energy technologies due to a lack of support and

information. This finding is relevant to Sunyani's hospitality sector, where smaller

Filimonau et al. (2020), as cited in Barney (1991), noted that restaurants in urban

areas with high concentrations of environmentally conscious consumers showed

greater awareness and were more likely to consider adopting renewable energy. This

suggests that in Sunyani, if customer demand for sustainable practices grows,

awareness could increase among businesses catering to such markets.

In summary, empirical evidence indicates that while awareness of renewable energy is

rising, it remains uneven across Sunyani's hospitality industry. Larger establishments

with more resources are generally more aware of renewable energy options, while

smaller businesses may need additional support to enhance their awareness.

Identifying Factors Influencing the Willingness of Restaurants and Hotels to

Adopt Renewable Energy

Several studies have explored factors influencing the willingness of hotels and

restaurants to adopt renewable energy. Financial capacity is a key factor. Mbasera et

al. (2016), as cited in Sawin et al. (2019), found that the high initial cost of renewable

energy technologies is a significant barrier for small and medium-sized enterprises in

Zimbabwe’s hospitality sector. This finding is applicable to Sunyani, where many

businesses might also struggle with the upfront costs of renewable energy solutions.

Management commitment also plays a crucial role. Saiful and Norsiah (2018), as

cited in Kasim and Ismail (2012), found that hotels with management teams

committed to environmental sustainability are more likely to adopt renewable energy,

renewable energy may be higher in businesses with management dedicated to

sustainability.

The regulatory environment and technological availability are important factors as

well. Ustad (2010), as cited in IRENA (2021), highlighted that establishments in

regions with strict environmental regulations are more likely to adopt renewable

energy solutions. In Sunyani, the presence of government incentives and supportive

regulations could significantly influence the willingness of hotels and restaurants to

embrace renewable energy.

Consumer demand perception is another critical factor. Kasim and Ismail (2012), as

cited in Bohdanowicz and Martinac (2007), found that hotels believing their

customers value sustainability showed a higher willingness to adopt renewable

energy. This indicates that businesses in Sunyani perceiving growing demand for eco-

friendly practices may be more inclined to invest in renewable energy.

Evaluating the Potential Benefits and Challenges Associated with the

Implementation of Renewable Energy Solutions

Implementing renewable energy solutions in the hospitality industry presents both

challenges and benefits. Iraldo et al. (2017), as cited in Barney (1991), found that the

most significant challenges include high upfront costs and the technical complexity of

integrating these systems into existing infrastructure. These challenges are particularly
relevant for businesses in Sunyani, where financial and technical resources may be

limited.

Despite these challenges, the benefits of adopting renewable energy are substantial.

Han et al. (2018), as cited in Rogers (2003), observed that hotels in South Korea that

implemented renewable energy solutions reported significant long-term cost savings.

They also noted improved brand image and customer satisfaction, as more consumers

preferred businesses with strong environmental credentials. This suggests that

Sunyani’s hospitality businesses could similarly benefit from enhanced reputation and

customer loyalty through renewable energy adoption.

Parsa et al. (2015), as cited in Kasim and Ismail (2012), found that renewable energy

adoption was associated with significant reductions in greenhouse gas emissions and a

lower carbon footprint in U.S. restaurants. This environmental benefit could strongly

motivate hotels and restaurants in Sunyani, especially as global and local

environmental concerns become more pressing.

Furthermore, businesses adopting renewable energy may gain a strategic advantage.

Karagiorgas et al. (2006), as cited in Ajzen (1991), noted that early adopters of

renewable energy can differentiate themselves in a competitive market. This

advantage is particularly significant in Sunyani, where competition among hospitality

businesses is increasing.

In conclusion, while the implementation of renewable energy in Sunyani's hospitality

industry presents challenges, the potential benefits—including cost savings, enhanced

Addressing initial barriers through strategic planning and supportive policies can help

businesses in this sector successfully transition to renewable energy.

Conclusion

This literature review has provided an overview of key concepts, theories, and

empirical findings related to the adoption of renewable energy in the hospitality

sector, with a focus on hotels and restaurants in Sunyani. It has highlighted the

importance of awareness, factors influencing the willingness to adopt renewable

energy, and the challenges and benefits associated with implementation. The insights

gained will inform the development of a conceptual framework for this study, which

will be discussed in the next chapter.