Impact of upfront cost alleviation policies and spatial diffusion on solar adoption in U.S. K-12 schools

Xue Gao, Han Li, Tian Tang, Lanbing Tao and Shuang Li

Energy Economics, 2025, vol. 149, issue C

Abstract: The diffusion pattern of green technologies, particularly solar photovoltaics (PV), is widely deliberated, but quantitative work primarily centers on residential adoption. There has been a lack of quantitative empirical research to examine adoption and diffusion patterns and policy impacts in the education sector. The regression results in this study show that a 1 % increase in the proportion of free-lunch students in a school is associated with a 0.58 % decrease in the solar adoption probability. Difference-in-differences results show that upfront cost alleviation policies, including the American Recovery and Reinvestment Act of 2009 (ARRA) and Power Purchase Agreements (PPAs), can increase the probability of adopting solar. We also find evidence of spatial diffusion on solar adoption, with a stronger effect observed among schools with similar socioeconomic characteristics. This study contributes to the literature by examining the intersection of education and renewable energy development as a new form of infrastructure investment. These results also inform work on broader school-facility upgrades and built-environment improvements.

Keywords: Upfront cost alleviation policies; Spatial diffusion; Solar adoption; K-12 schools (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325005857

DOI: 10.1016/j.eneco.2025.108758

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