Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217143 
Year of Publication: 
2019
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 10 [Issue:] 1 [Publisher:] The Econometric Society [Place:] New Haven, CT [Year:] 2019 [Pages:] 275-310
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
This paper estimates demand for residential solar photovoltaic (PV) systems using a new approach to address three empirical challenges that often arise with count data: excess zeros, unobserved heterogeneity, and endogeneity of price. Our results imply a price elasticity of demand for solar PV systems of −0.65. Counterfactual policy simulations indicate that reducing state financial incentives in half would have led to 9% fewer new installations in Connecticut in 2014. Calculations suggest a subsidy program cost of $364/tCO2 assuming solar displaces natural gas. Our Poisson hurdle approach holds promise for modeling the demand for many new technologies.
Subjects: 
Count data
hurdle model
fixed effects
instrumental variables
Poisson
energy policy
JEL: 
C33
C36
Q42
Q48
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size
178.78 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.