Social Learning and Solar Photovoltaic Adoption

Gillingham, Kenneth T.; Bollinger, Bryan

doi:10.1287/mnsc.2020.3840

Social Learning and Solar Photovoltaic Adoption

Journal Article · 01 November 2021 · Management Science

DOI:https://doi.org/10.1287/mnsc.2020.3840· OSTI ID:1980963

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Yale University, New Haven, Connecticut 06511,; National Bureau of Economic Research. Cambridge, Massachusetts 02138,
Stern School of Business, New York University, New York, New York 10012

Growing literature points to the effectiveness of leveraging social interactions and nudges to spur adoption of prosocial behaviors. This study investigates a large-scale behavioral intervention designed to actively leverage social learning and peer interactions to encourage adoption of residential solar photovoltaic systems. Municipalities choose a solar installer offering group pricing and undertake an informational campaign driven by volunteer ambassadors. We find a causal treatment effect of 37 installations per municipality from the campaigns and no evidence of harvesting or persistence. The intervention also lowers installation prices. Randomized controlled trials based on the intervention show that selection into the program is important, whereas group pricing is not. Our results suggest that the program provided economies of scale and lowered consumer acquisition costs, leading to low-cost emission reductions.

This paper was accepted by Matthew Shum, marketing.

Research Organization:: Yale Univ., New Haven, CT (United States)

Sponsoring Organization:: USDOE Office of Energy Efficiency and Renewable Energy (EERE)

DOE Contract Number:: EE0006128; EE0007657

OSTI ID:: 1980963

Journal Information:: Management Science, Vol. 67, Issue 11; ISSN 0025-1909

Publisher:: Institute for Operations Research and the Management Sciences (INFORMS)

Country of Publication:: United States

Language:: English

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