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

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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).
    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. 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.

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