Social Networks and Renewable Energy Technology Adoption: Empirical Evidence from Biogas Adoption in China

41 Pages Posted: 15 Nov 2021

See all articles by Pan He

Pan He

Southwestern University of Finance and Economics (SWUFE)

Stefania Lovo

University of Reading

Marcella Veronesi

University of Verona - Department of Economics; Center for Development and Cooperation (NADEL)

Abstract

We provide novel empirical evidence on the association between social networks and the adoption of renewable energy technology. We distinguish between two main transmission mechanisms through which social networks can affect renewable energy technology adoption: information diffusion and social influence. Using data primarily collected from rural China on biogas adoption, we find that both mechanisms are at work. In addition, we find that information spreads through trusted network members, such as friends and family, while social influence is mainly exercised by government officials. Government officials are more likely to promote the adoption of technology by leading by example rather than by spreading information.

Keywords: Social networks, social influence, information diffusion, Renewable energy, biogas, China

JEL Classification: O13, O33, Q16, Q42, Q55, Q56

Suggested Citation

He, Pan and Lovo, Stefania and Veronesi, Marcella, Social Networks and Renewable Energy Technology Adoption: Empirical Evidence from Biogas Adoption in China. Available at SSRN: https://ssrn.com/abstract=3963665 or http://dx.doi.org/10.2139/ssrn.3963665

Pan He

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

Stefania Lovo (Contact Author)

University of Reading ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

Marcella Veronesi

University of Verona - Department of Economics ( email )

Via Cantarane 24
Verona, 37129
Italy

Center for Development and Cooperation (NADEL) ( email )

Zürichbergstrasse 18
8092 Zurich, CH-1015
Switzerland

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