Are Peer Effects Present in Residential Solar Installations? Evidence from Minnesota and Wisconsin

Authors

Nadia Mezic, Macalester CollegeFollow

Document Type

Honors Project - Open Access

Abstract

There are geographic differences in the rate of adoption of residential photovoltaic (PV) solar. Are adoption rates in small scale localities (counties and zip codes) influenced by previous, nearby adoptions? This paper adds to the literature on Peer Effects with an analysis of Minnesota and Wisconsin zip codes. I use residential adoption data from the OpenPV Project in an empirical analysis of social interactions. My findings indicate that there is a small but significant effect of nearby adoptions at the zip code level. These peer effects are shown to be nuanced by policy incentives such as the XCEL Solar Rewards Program. I additionally engage in a case study analysis of the relationship of some localities.

Recommended Citation

Mezic, Nadia, "Are Peer Effects Present in Residential Solar Installations? Evidence from Minnesota and Wisconsin" (2018). Economics Honors Projects. 84.
https://digitalcommons.macalester.edu/economics_honors_projects/84