Sunspots That Matter: The Effect of Weather on Solar Technology Adoption
Environmental and Resource Economics, ISSN: 1573-1502, Vol: 84, Issue: 4, Page: 1179-1219
2023
- 6Citations
- 11Captures
- 2Mentions
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Article Description
This paper tests for the presence of behavioral biases in household decisions to adopt solar photovoltaic installations using exogenous variation in weather. I find that residential technology uptake responds to exceptional weather, defined as deviations from the long-term mean, in line with the average time gap between decision-making and completion of the installation. In particular, a one standard deviation increase in sunshine hours during the purchase period leads to an approximate increase of 4.7% in weekly solar PV installations. This effect persists in aggregate data. I consider a range of potential mechanisms and find suggestive evidence for projection bias and salience as key drivers of my results.
Bibliographic Details
Springer Science and Business Media LLC
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