Spatial dynamics of low-carbon transitions: Peer effects and disadvantaged communities in solar energy, electric vehicle, and heat pump adoption in the United States

Abstract

The transition to clean energy technologies in residential homes is accelerating. Previous research highlights peer influence, driven by social interactions and visibility, as a key factor in adoption, primarily focusing on rooftop solar installations. However, much of this research has not considered the impact of built environment characteristics or other clean energy technologies. This study explores peer effects in the adoption of rooftop solar, electric vehicles (EVs), and heat pumps across urban, rural, and disadvantaged U.S. communities, hypothesizing that increased visibility, due to neighbor installations, enhances these effects. All technologies exhibit peak peer effects at distances of 150 to 250 m. Rooftop solar has the strongest peer effects, extending up to 700 m in urban areas and 2 km in rural areas. EVs and heat pumps exhibit weaker effects within 400 and 250 m in urban settings, respectively. Peer effects are more pronounced in less densely populated areas and during early stages of adoption. Disadvantaged communities, however, require additional support to overcome their weaker peer effects, especially for EV adoption in urban areas and rooftop solar in rural regions. These findings highlight the need for targeted strategies that leverage visibility and peer influence while addressing socioeconomic disparities.