Spatio-Temporal Variation in Peer Effects - The Case of Rooftop Photovoltaic Systems in Germany

Johannes Rode and Sven Müller

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: We study spatio-temporal variation of peer effects in rooftop photovoltaic adoption of households. Our investigation employs geocoded data on all potential adopters and on all grid-connected photovoltaic systems set up in Germany through 2010. The detailed locational data allows us to construct an individual measure of peer effects for each potential adopter across Germany. Using a discrete choice model with panel data, we find evidence that the impact of peers on adoption decisions is non-linearly decreasing in distance to a location. The pattern is most pronounced for distances up to 200 meters. We also find that peer effects in photovoltaics adoption decrease over time and that German solar system adopters are of high socio-economic status.

Date: 2016-12-01
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Working Paper: Spatio-temporal variation in peer effects - The case of rooftop photovoltaic systems in Germany (2016)
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