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De Groote, Olivier
and Verboven, Frank
(2019)
Subsidies and Time Discounting in New Technology Adoption: Evidence from Solar Photovoltaic Systems.
American Economic Review (AER), vol. 109 (n° 6).
pp. 2137-2172.
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Abstract
We study a generous program to promote the adoption of solar photovoltaic (PV) systems through subsidies on future electricity production, rather than through upfront investment subsidies. We develop a tractable dynamic model of new technology adoption, also accounting for local market heterogeneity. We identify the discount factor from demand responses to variation that shifts expected future but not current utilities. Despite the massive adoption, we find that households significantly discounted the future benefits from the new technology. This implies that an upfront investment subsidy program would have promoted the technology at a much lower budgetary cost.
| Item Type: | Article |
|---|---|
| Sub-title: | Evidence from Solar Photovoltaic Systems |
| Language: | English |
| Date: | June 2019 |
| Refereed: | Yes |
| JEL Classification: | C51 - Model Construction and Estimation Q48 - Government Policy Q58 - Government Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 15 Jan 2019 13:11 |
| Last Modified: | 04 Oct 2021 11:23 |
| OAI Identifier: | oai:tse-fr.eu:33213 |
| URI: | https://publications.ut-capitole.fr/id/eprint/30800 |
Available Versions of this Item
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Subsidies and time discounting in new technology adoption. (deposited 12 Jun 2019 08:11)
- Subsidies and Time Discounting in New Technology Adoption. (deposited 15 Jan 2019 13:11) [Currently Displayed]
