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Household Solar Analysis for Policymakers: Evidence from U.S. Data

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  • Rohan Best
  • Ryan Esplin

Abstract

There is a vast literature on household solar-panel uptake but there are mixed results for many explanatory variables such as income, education, age, and race. This creates a major challenge for policymakers, who devise solar-panel policies that relate to variables such as income. This study uses logit, probit, and linear probability models, along with the matching method of entropy balancing. We use household data from the 2019 American Housing Survey. Results using entropy balancing suggest that high housing values and older respondent age are key factors promoting solar-panel uptake. Income has some positive impacts, although detailed analysis tends to show insignificance. Education and race variables have insignificant coefficients when controlling for key variables. This paper could provide a basis for future policy approaches, such as means testing based on asset thresholds rather than income thresholds.

Suggested Citation

  • Rohan Best & Ryan Esplin, 2023. "Household Solar Analysis for Policymakers: Evidence from U.S. Data," The Energy Journal, , vol. 44(1), pages 195-214, January.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:1:p:195-214
    DOI: 10.5547/01956574.44.1.rbes
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    References listed on IDEAS

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    1. Matto Mildenberger & Peter D. Howe & Chris Miljanich, 2019. "Households with solar installations are ideologically diverse and more politically active than their neighbours," Nature Energy, Nature, vol. 4(12), pages 1033-1039, December.
    2. Philip Andrews-Speed, 2022. "How May National Culture Shape Public Policy? The Case of Energy Policy in China," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    3. Jing Liang & Pengfei Liu & Yueming Qiu & Yi David Wang & Bo Xing, 2020. "Time-of-Use Electricity Pricing and Residential Low-carbon Energy Technology Adoption," The Energy Journal, , vol. 41(3), pages 1-38, May.
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