Feedbacks among electric vehicle adoption, charging, and the cost and installation of rooftop solar photovoltaics

Abstract

Identifying feedback loops in consumer behaviours is important to develop policies to accentuate desired behaviour. Here, we use Granger causality to provide empirical evidence for feedback loops among four important components of a low-carbon economy. One loop includes the cost of installing rooftop solar (Cost) and the installation of rooftop solar (photovoltaics, PV); this loop is probably generated by learning by doing and reductions in the levelized cost of electricity. The second includes the purchase of electric vehicles (EV) and the installation of rooftop solar that is probably created by environmental complementarity. Finally, we address whether installing charging stations enhances the purchase of electric vehicles and vice versa; there is no evidence for a causal relation in either direction. Together, these results indicate ways to modify existing policy in ways that could trigger the Cost↔PV↔EV feedback loops and accelerate the transition to carbon-free technologies.