IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v111y2017icp75-84.html
   My bibliography  Save this article

Decision-making governance for purchases of solar photovoltaic systems in Japan

Author

Listed:
  • Tanaka, Kenta
  • Sekito, Mai
  • Managi, Shunsuke
  • Kaneko, Shinji
  • Rai, Varun

Abstract

In this study, we analyze the factors that affecting purchasing decision time for solar photovoltaic (PV) s in Japan. Based on our survey, consumers spend about 4 months to make purchase decision. Also, our estimation results show that information and knowledge that consumers obtained from the neighborhood and elsewhere make consumers more careful in their decision-making and extend the purchase decision. On the other hand, experts on the advantages and disadvantages of installation shortened the decision time. The situation and environment of each household in terms of income, family size, and the way of purchase of new homes have influenced on the decision to purchase a PV system. In addition, the availability of feed in tariffs was highly correlated with purchasing motivation, but unexpectedly the capital subsidy programs have either little impacts or even delayed impacts on the purchasing timing.

Suggested Citation

  • Tanaka, Kenta & Sekito, Mai & Managi, Shunsuke & Kaneko, Shinji & Rai, Varun, 2017. "Decision-making governance for purchases of solar photovoltaic systems in Japan," Energy Policy, Elsevier, vol. 111(C), pages 75-84.
  • Handle: RePEc:eee:enepol:v:111:y:2017:i:c:p:75-84
    DOI: 10.1016/j.enpol.2017.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517305724
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2017.09.012?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Negro, Simona O. & Alkemade, Floortje & Hekkert, Marko P., 2012. "Why does renewable energy diffuse so slowly? A review of innovation system problems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3836-3846.
    2. Hunt Allcott, 2011. "Consumers' Perceptions and Misperceptions of Energy Costs," American Economic Review, American Economic Association, vol. 101(3), pages 98-104, May.
    3. Richard G. Newell & Juha Siikamäki, 2015. "Individual Time Preferences and Energy Efficiency," American Economic Review, American Economic Association, vol. 105(5), pages 196-200, May.
    4. Graham, Robert J, 1981. "The Role of Perception of Time in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 7(4), pages 335-342, March.
    5. Chowdhury, Sanjeeda & Sumita, Ushio & Islam, Ashraful & Bedja, Idriss, 2014. "Importance of policy for energy system transformation: Diffusion of PV technology in Japan and Germany," Energy Policy, Elsevier, vol. 68(C), pages 285-293.
    6. Welsch, Heinz & Kühling, Jan, 2009. "Determinants of pro-environmental consumption: The role of reference groups and routine behavior," Ecological Economics, Elsevier, vol. 69(1), pages 166-176, November.
    7. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    8. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    9. Marmorstein, Howard & Grewal, Dhruv & Fishe, Raymond P H, 1992. "The Value of Time Spent in Price-Comparison Shopping: Survey and Experimental Evidence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(1), pages 52-61, June.
    10. Jager, Wander, 2006. "Stimulating the diffusion of photovoltaic systems: A behavioural perspective," Energy Policy, Elsevier, vol. 34(14), pages 1935-1943, September.
    11. Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007. "Increased energy efficiency and the rebound effect: Effects on consumption and emissions," Energy Economics, Elsevier, vol. 29(1), pages 1-17, January.
    12. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    13. Jerry A. Hausman, 1979. "Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 33-54, Spring.
    14. Zarnikau, Jay, 2003. "Consumer demand for `green power' and energy efficiency," Energy Policy, Elsevier, vol. 31(15), pages 1661-1672, December.
    15. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    16. Park, C Whan & Iyer, Easwar S & Smith, Daniel C, 1989. "The Effects of Situational Factors on In-Store Grocery Shopping Behavior: The Role of Store Environment and Time Available for Shopping," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(4), pages 422-433, March.
    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. Li, Yanxue & Gao, Weijun & Ruan, Yingjun & Ushifusa, Yoshiaki, 2018. "The performance investigation of increasing share of photovoltaic generation in the public grid with pump hydro storage dispatch system, a case study in Japan," Energy, Elsevier, vol. 164(C), pages 811-821.
    2. Timothy N. Cason & John K. Stranlund & Frans P. de Vries, 2022. "Investment Incentives in Tradable Emissions Markets with Price Floors Approach," Purdue University Economics Working Papers 1331, Purdue University, Department of Economics.
    3. Emily Schulte & Fabian Scheller & Daniel Sloot & Thomas Bruckner, 2021. "A meta-analysis of residential PV adoption: the important role of perceived benefits, intentions and antecedents in solar energy acceptance," Papers 2112.12464, arXiv.org.
    4. Wang, Xiaozhen & Zheng, Ying & Jiang, Zihao & Tao, Ziyang, 2021. "Influence mechanism of subsidy policy on household photovoltaic purchase intention under an urban-rural divide in China," Energy, Elsevier, vol. 220(C).
    5. Garlet, Taís Bisognin & Ribeiro, José Luis Duarte & de Souza Savian, Fernando & Mairesse Siluk, Julio Cezar, 2019. "Paths and barriers to the diffusion of distributed generation of photovoltaic energy in southern Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 157-169.
    6. Setyawati, Dinita, 2020. "Analysis of perceptions towards the rooftop photovoltaic solar system policy in Indonesia," Energy Policy, Elsevier, vol. 144(C).
    7. 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).
    8. Massimo Filippini & Lin Zhang, 2019. "Impacts of heat metering and efficiency retrofit policy on residential energy consumption in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 203-216, April.
    9. Rosa, Carmen B. & Wendt, João Francisco M. & Chaves, Daniel M.S. & Thomasi, Virginia & Michels, Leandro & Siluk, Julio Cezar M., 2020. "Mathematical modeling for the measurement of the competitiveness index of Brazil south urban sectors for installation of photovoltaic systems," Energy Policy, Elsevier, vol. 136(C).
    10. Kenta Tanaka & Clevo Wilson & Shunsuke Managi, 2022. "Impact of feed-in tariffs on electricity consumption," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 49-72, January.
    11. Kenta Tanaka & Kazuyuki Iwata & Shunsuke Managi, 2021. "MPG Illusion and Vehicle Choice: An Empirical Study of the Japanese Household Survey," Energies, MDPI, vol. 14(21), pages 1-13, November.
    12. Best, Rohan & Trück, Stefan, 2020. "Capital and policy impacts on Australian small-scale solar installations," Energy Policy, Elsevier, vol. 136(C).
    13. Sommerfeldt, Nelson & Lemoine, Ida & Madani, Hatef, 2022. "Hide and seek: The supply and demand of information for household solar photovoltaic investment," Energy Policy, Elsevier, vol. 161(C).
    14. Felipe Moraes do Nascimento & Julio Cezar Mairesse Siluk & Fernando de Souza Savian & Taís Bisognin Garlet & José Renes Pinheiro & Carlos Ramos, 2020. "Factors for Measuring Photovoltaic Adoption from the Perspective of Operators," Sustainability, MDPI, vol. 12(8), pages 1-29, April.

    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. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2021. "Heterogeneous preferences and investments in energy saving measures," Resource and Energy Economics, Elsevier, vol. 63(C).
    2. Kowalska-Pyzalska, Anna, 2018. "What makes consumers adopt to innovative energy services in the energy market? A review of incentives and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3570-3581.
    3. Anna Kowalska-Pyzalska, 2016. "What makes consumers adopt to innovative energy services in the energy market?," HSC Research Reports HSC/16/09, Hugo Steinhaus Center, Wroclaw University of Technology.
    4. Kowalska-Pyzalska, Anna & Maciejowska, Katarzyna & Suszczyński, Karol & Sznajd-Weron, Katarzyna & Weron, Rafał, 2014. "Turning green: Agent-based modeling of the adoption of dynamic electricity tariffs," Energy Policy, Elsevier, vol. 72(C), pages 164-174.
    5. Schleich, Joachim & Gassmann, Xavier & Faure, Corinne & Meissner, Thomas, 2016. "Making the implicit explicit: A look inside the implicit discount rate," Energy Policy, Elsevier, vol. 97(C), pages 321-331.
    6. Filippini, Massimo & Wekhof, Tobias, 2021. "The effect of culture on energy efficient vehicle ownership," Journal of Environmental Economics and Management, Elsevier, vol. 105(C).
    7. Loureiro, Maria & Labandeira, Xavier, 2019. "Exploring Energy Use in Retail Stores: A Field Experiment," Energy Economics, Elsevier, vol. 84(S1).
    8. Hafner, Rebecca J. & Elmes, David & Read, Daniel, 2019. "Promoting behavioural change to reduce thermal energy demand in households: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 102(C), pages 205-214.
    9. Vesterberg, Mattias, 2017. "Heterogeneity in price responsiveness of electricity: Contract choice and the role of media coverage," Umeå Economic Studies 940, Umeå University, Department of Economics.
    10. Lucas W. Davis & Gilbert E. Metcalf, 2016. "Does Better Information Lead to Better Choices? Evidence from Energy-Efficiency Labels," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 589-625.
    11. Anna Kowalska-Pyzalska, 2015. "Social acceptance of green energy and dynamic electricity tariffs - a short review," HSC Research Reports HSC/15/07, Hugo Steinhaus Center, Wroclaw University of Technology.
    12. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    13. Bartels, Lara & Kesternich, Martin, 2022. "Motivate the crowd or crowd- them out? The impact of local government spending on the voluntary provision of a green public good," ZEW Discussion Papers 22-040, ZEW - Leibniz Centre for European Economic Research.
    14. Jihyo Kim & Suhyeon Nam, 2021. "Do Household Time, Risk, and Social Preferences Affect Home Energy Retrofit Decisions in Korea?," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    15. Stefano Ceolotto & Eleanor Denny, 2021. "Putting a new 'spin' on energy labels: measuring the impact of reframing energy efficiency on tumble dryer choices in a multi-country experiment," Trinity Economics Papers tep1521, Trinity College Dublin, Department of Economics.
    16. Alberini, Anna & Bezhanishvili, Levan & Ščasný, Milan, 2022. "“Wild” tariff schemes: Evidence from the Republic of Georgia," Energy Economics, Elsevier, vol. 110(C).
    17. Joshua Henkel & Georg Schwesinger, 2020. "Establishing Sustainable Consumption - How Future Policies Can Channel Consumer Preferences," Bremen Papers on Economics & Innovation 2007, University of Bremen, Faculty of Business Studies and Economics.
    18. Christoph Bühren & Maria Daskalakis, 2015. "Do not incentivize eco-friendly behavior - Go for a competition to go green!," MAGKS Papers on Economics 201534, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    19. Vesterberg, Mattias, 2017. "Power to the people: Electricity demand and household behavior," Umeå Economic Studies 942, Umeå University, Department of Economics.
    20. Qian Wang & Qiao-Mei Liang & Bing Wang & Fang-Xun Zhong, 2016. "Impact of household expenditures on CO2 emissions in China: Income-determined or lifestyle-driven?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 353-379, November.

    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:eee:enepol:v:111:y:2017:i:c:p:75-84. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.