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Sunny days: Spatial spillovers in photovoltaic system adoptions

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  • Irwin, Nicholas B.

Abstract

Spatial spillovers – peer effects from neighboring actions on one's own decisions – play an important role in the diffusion of technologies, particularly the adoption of residential photovoltaic (PV) systems and have important implications for renewable energy policies meant to encourage small-scale solar energy generation. Existing research notes spillovers manifest at large spatial scales but evidence at smaller scales is currently absent. In this work, we examine if spatial spillovers in residential PV system adoptions exist at small scales – specifically within one's nearest set of neighbors – using spatially explicit data on residential PV installations from Baltimore, MD. We find strong evidence for the existence of spatial spillovers, with a neighboring installation increasing PV system adoption likelihood by 16.5–17.1 percent. The results indicate the presence of a potential multiplier effect that can be targeted by policymakers interested in encouraging solar energy development to meet renewable energy goals.

Suggested Citation

  • Irwin, Nicholas B., 2021. "Sunny days: Spatial spillovers in photovoltaic system adoptions," Energy Policy, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:enepol:v:151:y:2021:i:c:s0301421521000616
    DOI: 10.1016/j.enpol.2021.112192
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    Cited by:

    1. Best, Rohan & Burke, Paul J., 2023. "Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia," Economic Modelling, Elsevier, vol. 120(C).
    2. Jianhua Zhang & Xiaolong Liu & Dimitris Ballas, 2023. "Spatial and relational peer effects on environmental behavioral imitation," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(4), pages 575-599, October.
    3. Zhang, Jianhua & Ballas, Dimitris & Liu, Xiaolong, 2023. "Neighbourhood-level spatial determinants of residential solar photovoltaic adoption in the Netherlands," Renewable Energy, Elsevier, vol. 206(C), pages 1239-1248.

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    More about this item

    Keywords

    Solar photovoltaic (PV); Spatial spillovers; Renewable energy; Peer effects;
    All these keywords.

    JEL classification:

    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • D1 - Microeconomics - - Household Behavior
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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