I Spot, I Adopt! Peer Effects and Visibility in Solar Photovoltaic System Adoption of Households

58 Pages Posted: 23 Oct 2019 Last revised: 8 Mar 2021

See all articles by Johannes Rode

Johannes Rode

Technische Universität Darmstadt

Sven Müller

Otto-von-Guericke University Magdeburg

Date Written: March 08, 2021

Abstract

We study peer effect variation in rooftop photovoltaic adoption by households. Our investigation employs geocoded data on all potential adopters and on all grid-connected photovoltaic systems set up in Baden-Württemberg, Germany through 2010. We construct an individual measure of peer effects for each potential adopter. For identification, we exploit exogenous variation in two dimensions of photovoltaic system roof appropriateness: measures for their average inclination and orientation. Using different models of adoption with panel data, we only find evidence for causal peer effects for visible systems. We show that visible PV systems cause an increase in the probability of installing which is around 8 times higher in comparison to not visible PV systems.

Keywords: Causal peer effects, installed base, discrete choice, technology adoption and diffusion, solar photovoltaic panels, visibility

JEL Classification: O33, C35, Q55, R10

Suggested Citation

Rode, Johannes and Müller, Sven, I Spot, I Adopt! Peer Effects and Visibility in Solar Photovoltaic System Adoption of Households (March 08, 2021). Available at SSRN: https://ssrn.com/abstract=3469548 or http://dx.doi.org/10.2139/ssrn.3469548

Johannes Rode (Contact Author)

Technische Universität Darmstadt ( email )

Chair of International Economics
Hochschulstraße 1
Darmstadt, 64289
Germany

HOME PAGE: http://www.vwl2.wi.tu-darmstadt.de/rode

Sven Müller

Otto-von-Guericke University Magdeburg ( email )

Magdeburg
Germany

HOME PAGE: http://https://www.om.ovgu.de/Team/Chair+Holder.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
110
Abstract Views
869
rank
336,329
PlumX Metrics