Peer Effects in the Diffusion of Solar Photovoltaic Panels

Bryan K. Bollinger · Kenneth T Gillingham

1,009 citations0/0 files storedMarketing Science

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Innovation Diffusion and Forecasting Consumer Market Behavior and Pricing Social Acceptance of Renewable Energy

Abstract

Social interaction (peer) effects are recognized as a potentially important factor in the diffusion of new products. In the case of environmentally friendly goods or technologies, both marketers and policy makers are interested in the presence of causal peer effects as social spillovers can be used to expedite adoption. We provide a methodology for the simple, straightforward identification of peer effects with sufficiently rich data, avoiding the biases that occur with traditional fixed effects estimation when using the past installed base of consumers in the reference group. We study the diffusion of solar photovoltaic panels in California and find that at the average number of owner-occupied homes in a zip code, an additional installation increases the probability of an adoption in the zip code by 0.78 percentage points. Our results provide valuable guidance to marketers designing strategies to increase referrals and reduce customer acquisition costs. They also provide insights into the diffusion process of environmentally friendly technologies.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 1,009 citations exist upstream.

References

2019Diffusion of Innovations 1 1988On the mechanics of economic development 1986Increasing Returns and Long-Run Growth 1969A New Product Growth for Model Consumer Durables 1976A New Product Growth Model for Consumer Durables 2010Going green to be seen: Status, reputation, and conspicuous conservation.1991New Product Diffusion Models in Marketing: A Review and Directions for Research 1967Role of Product-Related Conversations in the Diffusion of a New Product

Cited by

2017The Nature and Origins of Misperceptions: Understanding False and Unsupported Beliefs About Politics 2014Spatial patterns of solar photovoltaic system adoption: The influence of neighbors and the built environment 2018Sustainable consumer behavior 2017Explaining interest in adopting residential solar photovoltaic systems in the United States: Toward an integration of behavioral theories 2018The effect of social networks structure on innovation performance: A review and directions for research

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.