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Social Learning and Solar Photovoltaic Adoption

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  • Kenneth Gillingham
  • Bryan Bollinger

Abstract

A growing literature points to the effectiveness of leveraging social interactions and nudges to spur adoption of pro-social behaviors. This study investigates a large-scale behavioral intervention designed to actively leverage social learning and peer interactions to encourage adoption of residential solar photovoltaic systems. Municipalities choose a solar installer offering group pricing, and undertake an informational campaign driven by volunteer ambassadors. We find a causal treatment effect of 37 installations per municipality from the campaigns, and no evidence of harvesting or persistence. The intervention also lowers installation prices. Randomized controlled trials based on the intervention show that selection into the program is important while group pricing is not. Our results suggest that the program provided economies of scale and lowered consumer acquisition costs, leading to low-cost emissions reductions.

Suggested Citation

  • Kenneth Gillingham & Bryan Bollinger, 2020. "Social Learning and Solar Photovoltaic Adoption," CESifo Working Paper Series 8434, CESifo.
    • Handle: RePEc:ces:ceswps:_8434
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    Cited by:

    1. Vona, Francesco, 2023. "Managing the distributional effects of climate policies: A narrow path to a just transition," Ecological Economics, Elsevier, vol. 205(C).
    2. Bonan, J. & Cattaneo, C. & d’Adda, G. & Galliera, A. & Tavoni, M., 2024. "Widening the scope: The direct and spillover effects of nudging water efficiency in the presence of other behavioral interventions," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).
    3. Shuihua Han & Yudi Mo & Zhenyuan Liu & Cheng Lei & Zhen Ye, 2024. "The impact of public climate change concern on sustainable product consumption: a case study of new energy vehicles in China," Annals of Operations Research, Springer, vol. 342(1), pages 323-353, November.
    4. Bryan Bollinger & Kenneth Gillingham & Stefan Lamp & Tsvetan Tsvetanov, 2024. "Promotional Campaign Duration and Word of Mouth in Solar Panel Adoption," Marketing Science, INFORMS, vol. 43(5), pages 1132-1148, September.
    5. Tanaka, Takuro & Mizutani, Fumitoshi, 2023. "Determinants of the adoption of energy efficient water heaters in the residential sector: Evidence from a survey in Japan," Energy Policy, Elsevier, vol. 180(C).
    6. Cai, Qiran & Qing, Jing & Xu, Qingyang & Shi, Gang & Liang, Qiao-Mei, 2024. "Techno-economic impact of electricity price mechanism and demand response on residential rooftop photovoltaic integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    7. Min, Yohan & Ko, Inhwan, 2023. "Causal effects of place, people, and process on rooftop solar adoption through Bayesian inference," Energy, Elsevier, vol. 285(C).

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    More about this item

    Keywords

    non-price interventions; social learning; renewable energy; solar photovoltaic panels; technology adoption; natural experiment;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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