Unequal Uptake: Assessing Distributional Disparities in the Residential Solar Market

Jackson Dorsey and Derek C. Wolfson

No 32814, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine technology adoption and consumer welfare disparities across demographic groups using data from an online solar photovoltaic (PV) marketplace. Low-income households are 25% less likely to purchase solar through the platform and obtain 53% lower expected consumer surplus than high-income households. Moreover, Black and Hispanic households are relatively less likely to purchase solar through the platform and obtain lower consumer surplus than White and Asian households. We develop a method to decompose the drivers of consumer welfare disparities between demographic groups. Differences in demand fully account for the consumer surplus disparities between high- and low-income households and between White and Hispanic households. However, supply-side factors explain 37% of the consumer surplus gap between White and Black households. Black households get relatively fewer bids and face higher prices, and installers have higher implied costs to serve them. Lastly, we assess counterfactuals that offer targeted price discounts to certain demographic groups.

JEL-codes: D22 D44 D63 H23 L11 Q4 Q41 Q48 (search for similar items in EconPapers)
Date: 2024-08
New Economics Papers: this item is included in nep-ene, nep-reg and nep-ure
Note: EEE IO
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Published as Jackson Dorsey & Derek Wolfson, 2024. "Unequal Uptake: Assessing Distributional Disparities in the Residential Solar Market," Journal of the Association of Environmental and Resource Economists, vol 11(S1), pages S71-S109.
Published as Unequal Uptake: Assessing Distributional Disparities in the Residential Solar Market , Jackson Dorsey, Derek Wolfson. in Distributional Consequences of New Energy Technologies and Policies , Hausman, Levinson, and Li. 2024

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