Sunspots that matter

Lamp, Stefan (2018) Sunspots that matter: the effect of weather on solar technology adoption. TSE Working Paper, n. 18-879, Toulouse

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Official URL: http://tse-fr.eu/pub/32349

Abstract

This paper tests for the effect of weather on solar technology adoption, taking advantage of the fact that sunshine is a direct input factor for solar electricity production. I find that a one standard deviation increase in monthly sunshine hours above the long-term average leads to an approximate 6.2 % growth in the residential solar market over a six-month period. I consider a range of potential mechanisms and find strong evidence for projection bias and salience as key drivers of my results. My findings show that there is an asymmetric response to positive and negative sunshine deviations from the long-term mean and that counties with a high vote share for the green party are particularly affected by these biases.

Item Type: Monograph (Working Paper)
Sub-title: the effect of weather on solar technology adoption
Language: English
Date: January 2018
Place of Publication: Toulouse
Uncontrolled Keywords: projection bias, salience, technology diffusion, solar technology, energy policy
JEL codes: D12 - Consumer Economics - Empirical Analysis
D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Q42 - Alternative Energy Sources
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 24 Apr 2018 09:09
Last Modified: 24 Jul 2018 12:29
OAI ID: oai:tse-fr.eu:32349
URI: http://publications.ut-capitole.fr/id/eprint/25806

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