The adoption of photovoltaic systems in Wiesbaden, Germany

Sven Müller and Johannes Rode

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: The purpose of this study is to investigate factors that determine the adoption of photovoltaic (PV) systems. Our case study of the city of Wiesbaden, Germany, is based on a geocoded data set of the grid-connected PV systems set up through 2009. We aim to determine whether the decision to install can be explained by peer effects measured by preexisting installations in the vicinity, i.e. the installed base which is determined for each decision-maker individually. We employ a binary panel logit model and control for spatial variations in buying power and population density. Our analysis reveals a significantly positive influence of previously installed systems located nearby on the decision to install a PV system.

Date: 2013
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Published in Economics of Innovation and New Technology 5 (2013) : pp. 519-535

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Journal Article: The adoption of photovoltaic systems in Wiesbaden, Germany (2013)
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