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Social Learning and Solar Photovoltaic Adoption

Author

Listed:
  • Kenneth T. Gillingham

    (Yale University, New Haven, Connecticut 06511; National Bureau of Economic Research. Cambridge, Massachusetts 02138)

  • Bryan Bollinger

    (Stern School of Business, New York University, New York, New York 10012)

Abstract

Growing literature points to the effectiveness of leveraging social interactions and nudges to spur adoption of prosocial 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, whereas group pricing is not. Our results suggest that the program provided economies of scale and lowered consumer acquisition costs, leading to low-cost emission reductions.

Suggested Citation

  • Kenneth T. Gillingham & Bryan Bollinger, 2021. "Social Learning and Solar Photovoltaic Adoption," Management Science, INFORMS, vol. 67(11), pages 7091-7112, November.
    • Handle: RePEc:inm:ormnsc:v:67:y:2021:i:11:p:7091-7112
    DOI: 10.1287/mnsc.2020.3840
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    Cited by:

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    2. Bonan, Jacopo & Cattaneo, Cristina & D'Adda, Giovanna & Galliera, Arianna & Tavoni, Massimo, 2023. "Widening the Scope: The Direct and Spillover Effects of Nudging Water Efficiency in the Presence of Other Behavioral Interventions," RFF Working Paper Series 23-46, Resources for the Future.
    3. 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).

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    More about this item

    Keywords

    nonprice 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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