Hurdles and steps: Estimating demand for solar photovoltaics

Artikel

This paper estimates demand for residential solar photovoltaic (PV) systems using a new approach to address three empirical challenges that often arise with count data: excess zeros, unobserved heterogeneity, and endogeneity of price. Our results imply a price elasticity of demand for solar PV systems of −0.65. Counterfactual policy simulations indicate that reducing state financial incentives in half would have led to 9% fewer new installations in Connecticut in 2014. Calculations suggest a subsidy program cost of $364/tCO2 assuming solar displaces natural gas. Our Poisson hurdle approach holds promise for modeling the demand for many new technologies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Quantitative Economics ; ISSN: 1759-7331 ; Volume: 10 ; Year: 2019 ; Issue: 1 ; Pages: 275-310 ; New Haven, CT: The Econometric Society

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation ; Alternative Energy Sources ; Energy: Government Policy
• Subject: Count data ; hurdle model ; fixed effects ; instrumental variables ; Poisson ; energy policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gillingham, Kenneth ; Tsvetanov, Tsvetan
• Event: Veröffentlichung
• (who): The Econometric Society
• (where): New Haven, CT
• (when): 2019

Further information

• DOI: doi:10.3982/QE919
• Handle: http://hdl.handle.net/10419/217143
• Last update: 10.03.2025, 11:44 AM CET