IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v44y2021i2p262-288.html
   My bibliography  Save this article

The Residential Solar PV in the Mid-Atlantic: A Spatial Panel Approach

Author

Listed:
  • Oleg Kucher
  • Donald Lacombe
  • Sean T. Davidson

Abstract

This study examines residential solar photovoltaic (PV) adoption in mid-Atlantic counties over the 2005–2016 period. Using a spatial Durbin panel model, we find significant spatial dependence in residential solar PV adoption at the county level. In the presence of spatial dependence, major determinants of the solar adoptions are electricity rates and solar-related policy regulation. The combined direct and indirect effect of electricity rates on solar PV capacity is 5.37 percent increase for a 1 percent increase in electricity price. This spatial coefficient estimate is about twice as large as corresponding panel estimates. We also find that the regulation and incentives significantly boost solar PV demand, which explains about 38 percent variation in residential solar capacity.

Suggested Citation

  • Oleg Kucher & Donald Lacombe & Sean T. Davidson, 2021. "The Residential Solar PV in the Mid-Atlantic: A Spatial Panel Approach," International Regional Science Review, , vol. 44(2), pages 262-288, March.
    • Handle: RePEc:sae:inrsre:v:44:y:2021:i:2:p:262-288
    DOI: 10.1177/0160017620914063
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017620914063
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0160017620914063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Takanobu Kosugi & Yoshiyuki Shimoda & Takayuki Tashiro, 2019. "Neighborhood influences on the diffusion of residential photovoltaic systems in Kyoto City, Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 477-505, October.
    2. Jonathan E. Hughes & Molly Podolefsky, 2015. "Getting Green with Solar Subsidies: Evidence from the California Solar Initiative," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(2), pages 235-275.
    3. Manfred M. Fischer & Arthur Getis (ed.), 2010. "Handbook of Applied Spatial Analysis," Springer Books, Springer, number 978-3-642-03647-7, January.
    4. Kwan, Calvin Lee, 2012. "Influence of local environmental, social, economic and political variables on the spatial distribution of residential solar PV arrays across the United States," Energy Policy, Elsevier, vol. 47(C), pages 332-344.
    5. Crago, Christine Lasco & Chernyakhovskiy, Ilya, 2017. "Are policy incentives for solar power effective? Evidence from residential installations in the Northeast," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 132-151.
    6. Severin Borenstein, 2017. "Private Net Benefits of Residential Solar PV: The Role of Electricity Tariffs, Tax Incentives, and Rebates," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(S1), pages 85-122.
    7. László Mátyás & Patrick Sevestre (ed.), 2008. "The Econometrics of Panel Data," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75892-1.
    8. Balta-Ozkan, Nazmiye & Yildirim, Julide & Connor, Peter M., 2015. "Regional distribution of photovoltaic deployment in the UK and its determinants: A spatial econometric approach," Energy Economics, Elsevier, vol. 51(C), pages 417-429.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pronti, A. & Zoboli, R., 2024. "Something new under the sun. A spatial econometric analysis of the adoption of photovoltaic systems in Italy," Energy Economics, Elsevier, vol. 134(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. Best, Rohan & Chareunsy, Andrea, 2022. "The impact of income on household solar panel uptake: Exploring diverse results using Australian data," Energy Economics, Elsevier, vol. 112(C).
    4. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Germeshausen, Robert, 2016. "Effects of Attribute-Based Regulation on Technology Adoption - The Case of Feed-In Tariffs for Solar Photovoltaic," VfS Annual Conference 2016 (Augsburg): Demographic Change 145712, Verein für Socialpolitik / German Economic Association.
    2. 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.
    3. Hancevic, Pedro I. & Sandoval, Hector H., 2023. "Solar panel adoption among Mexican small and medium-sized commercial and service businesses," Energy Economics, Elsevier, vol. 126(C).
    4. Pedro I. Hancevic & Hector H. Sandoval, 2023. "Solar Panel Adoption in SMEs in Emerging Countries," Working Papers 222, Red Nacional de Investigadores en Economía (RedNIE).
    5. Sébastien Houde & Wenjun Wang, 2022. "The Incidence of the U.S.-China Solar Trade War," CER-ETH Economics working paper series 22/372, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    6. Palm, A., 2020. "Early adopters and their motives: Differences between earlier and later adopters of residential solar photovoltaics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    7. O'Shaughnessy, Eric, 2022. "Rooftop solar incentives remain effective for low- and moderate-income adoption," Energy Policy, Elsevier, vol. 163(C).
    8. Palm, Alvar & Lantz, Björn, 2020. "Information dissemination and residential solar PV adoption rates: The effect of an information campaign in Sweden," Energy Policy, Elsevier, vol. 142(C).
    9. Crago, Christine L. & Koegler, Eric, 2018. "Drivers of growth in commercial-scale solar PV capacity," Energy Policy, Elsevier, vol. 120(C), pages 481-491.
    10. Axel Gautier & Julien Jacqmin, 2020. "PV adoption: the role of distribution tariffs under net metering," Journal of Regulatory Economics, Springer, vol. 57(1), pages 53-73, February.
    11. Best, Rohan & Burke, Paul J. & Nishitateno, Shuhei, 2019. "Evaluating the effectiveness of Australia's Small-scale Renewable Energy Scheme for rooftop solar," Energy Economics, Elsevier, vol. 84(C).
    12. Sun, Bixuan & Sankar, Ashwini, 2022. "The changing effectiveness of financial incentives: Theory and evidence from residential solar rebate programs in California," Energy Policy, Elsevier, vol. 162(C).
    13. Mark Colas & Emmett Saulnier, 2023. "Optimal Subsidies for Residential Solar," CESifo Working Paper Series 10446, CESifo.
    14. O'Shaughnessy, Eric, 2022. "How policy has shaped the emerging solar photovoltaic installation industry," Energy Policy, Elsevier, vol. 163(C).
    15. Wiggins, Seth, 2016. "It’s All Local? How Sub-State Policies Affect Western US Residential Solar Adoption," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235667, Agricultural and Applied Economics Association.
    16. Chu, Ling & Takeuchi, Kenji, 2022. "The non-operating solar projects: Examining the impact of the feed-in tariff amendment in Japan," Energy Policy, Elsevier, vol. 160(C).
    17. Bruno Moreno Rodrigo de Freitas, 2020. "Quantifying the effect of regulated volumetric electriciy tariffs on residential PV adoption under net metering scheme," Working papers of CATT hal-02976874, HAL.
    18. Saez, R. & Boer, D. & Shobo, A.B. & Vallès, M., 2024. "Self-consumption potential and surplus compensation policy impact on rooftop photovoltaic systems in Spain," Renewable Energy, Elsevier, vol. 229(C).
    19. Best, Rohan & Li, Han & Trück, Stefan & Truong, Chi, 2021. "Actual uptake of home batteries: The key roles of capital and policy," Energy Policy, Elsevier, vol. 151(C).
    20. Bruno Moreno Rodrigo de Freitas, 2020. "Quantifying the effect of regulated volumetric electriciy tariffs on residential PV adoption under net metering scheme," Working Papers hal-02976874, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:44:y:2021:i:2:p:262-288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.