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From energy consumers to prosumers: the role of peer effects in the diffusion of residential microgeneration technology

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  • Shandelle Steadman

    (ODI
    Loughborough University)

  • Anna Rita Bennato

    (Loughborough University)

  • Monica Giulietti

    (Loughborough University)

Abstract

In this work we study incentives and determinants which spur energy consumers to invest in a new technology, focusing on the UK residential adoption of microgeneration technology which uses solar photovoltaic systems. In particular, we focus on how the presence at the regional level of community energy organizations promotes new installations of solar panels among neighbouring residential consumers. We make use of a panel dataset based on county level data for the years 2011–2016, aggregated to NUTS-3 regions. We employ a set of spatial econometrics models, i.e., Spatial Autoregressive Model, Spatial Error Model and Spatial Durbin Model, to provide insights on the role of peer effects in the diffusion of the technology, the mechanisms through which peer effects can occur and how household adoption of new technology is affected. In our results we find evidence that local authorities and local energy communities play an important role in spreading information and trust towards a new technology among households resident in the same region.

Suggested Citation

  • Shandelle Steadman & Anna Rita Bennato & Monica Giulietti, 2023. "From energy consumers to prosumers: the role of peer effects in the diffusion of residential microgeneration technology," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 321-346, June.
    • Handle: RePEc:spr:epolin:v:50:y:2023:i:2:d:10.1007_s40812-023-00264-2
    DOI: 10.1007/s40812-023-00264-2
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    Cited by:

    1. Burlinson, Andrew & Davillas, Apostolos & Giulietti, Monica, 2023. "Socioeconomic Inequality in Low-Carbon Technology Adoption," IZA Discussion Papers 16114, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Energy consumers; Renewable energy; Diffusion of innovations;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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