Heterogeneity in the Adoption of Photovoltaic Systems in Flanders
36 Pages Posted: 20 Oct 2015
Date Written: October 2015
Abstract
We study the determinants of PV adoption in the region of Flanders (Belgium), where PV adoption reached high levels during 2006-2012, because of active government intervention. Based on a unique dataset at a very detailed spatial level, we estimate a Poisson model to explain the heterogeneity in adoption rates. We obtain the following findings. First, local policies have a robust and significant impact on PV adoption, providing indirect evidence that the larger regional incentives formed the basis for the strong development of PV adoption in the region. Second, there is a strong unconditional income effect, implying a Matthew effect in the subsidization of PVs. Our third finding is however that this income effect is largely driven by the fact that wealthier households are more likely to adopt because they tend to be larger (and hence higher users), are more frequent house owners (who capture more of the benefits), or own houses that are better suited for PV. We can thus identify the channels through which wealthier households are more likely to benefit from the PV support. Finally, we identify the importance of several housing characteristics: PV adoption tends to be more likely in larger and in more recently built houses. In several extensions, we consider the determinants of the average size of installed PVs, and the differential impact of certain variables over time.
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