Identifying feedback loops in consumer behaviors is crucial for developing policies to promote a low-carbon economy. Research shows feedback loops among cost, installation of rooftop solar, and purchase of electric vehicles, which can be leveraged to accelerate the transition to carbon-free technologies through policy adjustments.
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.
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