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Sunspots that matter: the effect of weather on solar technology adoption

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  • Lamp, Stefan

Abstract

This paper tests for the effect of weather on solar technology adoption, taking advantage of the fact that sunshine is a direct input factor for solar electricity production. I find that a one standard deviation increase in monthly sunshine hours above the long-term average leads to an approximate 6.2 % growth in the residential solar market over a six-month period. I consider a range of potential mechanisms and find strong evidence for projection bias and salience as key drivers of my results. My findings show that there is an asymmetric response to positive and negative sunshine deviations from the long-term mean and that counties with a high vote share for the green party are particularly affected by these biases.

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  • Lamp, Stefan, 2018. "Sunspots that matter: the effect of weather on solar technology adoption," TSE Working Papers 18-879, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:32349
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    Cited by:

    1. O'Shaughnessy, Eric, 2019. "Non-monotonic effects of market concentration on prices for residential solar photovoltaics in the United States," Energy Economics, Elsevier, vol. 78(C), pages 182-191.
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    4. Clot, Sophie & Grolleau, Gilles & Ibanez, Lisette, 2022. "Projection bias in environmental beliefs and behavioural intentions - An application to solar panels and eco-friendly transport," Energy Policy, Elsevier, vol. 160(C).

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    More about this item

    Keywords

    projection bias; salience; technology diffusion; solar technology; energy policy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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