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Peer-to-peer solar and social rewards: evidence from a field experiment

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  • Carattini, Stefano
  • Gillingham, Kenneth T.
  • Meng, Xiangyu
  • Yoeli, Erez

Abstract

Observability and social rewards have been demonstrated to influence the adoption of pro-social behavior in a variety of contexts. This study implements a field experiment to examine the influence of observability and social rewards in the context of a novel pro-social behavior: peer-to-peer solar. Peer-to-peer solar offers an opportunity to households who cannot have solar on their homes to access solar energy from their neighbors. However, unlike solar installations, peer-to-peer solar is an invisible form of pro-environmental behavior. We implemented a set of randomized campaigns using Facebook ads in the Massachusetts cities of Cambridge and Somerville, in partnership with a peer-to-peer company, which agreed to offer to a subsample of customers the possibility to share “green reports” online, providing shareable information about their greenness. We find that interest in peer-to-peer solar increases by up to 30% when “green reports,” which would make otherwise invisible behavior visible, are mentioned in the ads

Suggested Citation

  • Carattini, Stefano & Gillingham, Kenneth T. & Meng, Xiangyu & Yoeli, Erez, 2022. "Peer-to-peer solar and social rewards: evidence from a field experiment," LSE Research Online Documents on Economics 117361, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:117361
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    More about this item

    Keywords

    Peer to peer solar; pro-environmental behavior; social rewards; visibility; Facebook;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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