In the project, I develop a theoretical framework for analyzing the factors affecting the rate of diffusion of rooftop photovoltaics in the economy. I use the standard utility maximization theory from economics to build a model for thinking about how households and firms value such investments. In addition, I apply the model to real data from the Helsinki metropolitan area, Finland, to test whether its predictions match real-world observations. The research aims to produce information about the economic dimensions of rooftop solar investments for policymaking. Given the potential of the technology in climate change mitigation, understanding the customer value logic behind the investments is necessary in designing optimal incentive schemes to speed up its diffusion in the economy.

2021

2022