Accidental Environmentalists? Californian Demand for Teslas and Solar Panels

33 Pages Posted: 22 Dec 2014

See all articles by William Kaiser

William Kaiser

University of California, Los Angeles (UCLA)

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Stephen Locke

University of California, Los Angeles (UCLA)

Date Written: December 2014

Abstract

In the absence of a national carbon tax, household driving and electricity consumption impose social costs. Suburbanites drive more and consume more electricity than center city residents. If more suburbanites purchase electric vehicles (EV) and install solar panels, then their greenhouse gas emissions would sharply decrease. Using several data sets from California, we study the demand for electric vehicles and solar panels. We focus on the Tesla given its status as the highest quality EV. We investigate the joint distribution of the stock returns of Tesla and leading solar panel sellers to test for whether investors anticipate a complementarity in sales between these products. Finally, we use current and past vehicle quality and price data to explore trends in EV quality improvements due to industry competition between brands.

Suggested Citation

Kaiser, William and Kahn, Matthew E. and Locke, Stephen, Accidental Environmentalists? Californian Demand for Teslas and Solar Panels (December 2014). NBER Working Paper No. w20754. Available at SSRN: https://ssrn.com/abstract=2541530

William Kaiser (Contact Author)

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Stephen Locke

University of California, Los Angeles (UCLA) ( email )

Los Angeles, CA
United States

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