Do Pilot and Demonstration Projects Work?

38 Pages Posted: 31 Oct 2018

See all articles by Christopher J. Blackburn

Christopher J. Blackburn

Georgia Institute of Technology

Mallory E. Flowers

Erasmus University Rotterdam (EUR)

Daniel Matisoff

Georgia Institute of Technology

Juan Moreno-Cruz

University of Waterloo - School of Environment, Enterprise and Development

Date Written: 2018

Abstract

Pilot and demonstration (P&D) projects are commonly deployed to catalyze early adoption of technology, but are poorly understood in terms of mechanism and impact. We conceptually distinguish unique functions of pilots and demonstrations, then examine whether they accelerate green building adoption. To identify effects of P&Ds on adoption, we develop a difference-in-difference-in-differences strategy, exploiting variation in location, technologies, and timing of P&D projects. Results indicate a 12% increase in adoption rates within markets affected by P&D projects. Further analyses examine mechanisms driving this effect. Subsequent results suggest green building demonstration projects create learning externalities, proliferating technology diffusion under certain conditions.

Keywords: information spillovers, peer effects, social learning, pilot and demonstration projects, technology adoption, diffusion, policy evaluation, green building

JEL Classification: O330, Q550, D830

Suggested Citation

Blackburn, Christopher J. and Flowers, Mallory E. and Matisoff, Daniel and Moreno-Cruz, Juan, Do Pilot and Demonstration Projects Work? (2018). CESifo Working Paper No. 7252, Available at SSRN: https://ssrn.com/abstract=3275426 or http://dx.doi.org/10.2139/ssrn.3275426

Christopher J. Blackburn (Contact Author)

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

Mallory E. Flowers

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Daniel Matisoff

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

Juan Moreno-Cruz

University of Waterloo - School of Environment, Enterprise and Development ( email )

Waterloo, Ontario N2L 3G1
Canada

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