The attached poster represents my contribution to the following study.

Authors: Rong Rong and Christine Crago

Research Assistant: Scott Cohn, Ming Ge, and Emma Grazier

Abstract: In this study, we propose a conceptual model that considers the household’s costs and benefits in both owning and leasing options. More importantly, the model takes into account decision makers’ preference for delayed return and risky outcomes. We then empirically examine the connection between an individual’s behavioral preference and their own-vs-lease choice. To implement this project, we plan to recruit solar homeowners from Massachusetts and measure their time and risk preferences using state-of-the-art decision tasks recently developed in the field of behavioral economics. Participants of the study will receive real monetary payoff based on their own decisions. This “revealed” preference approach may provide more accurate measurement of individual preference than the stated preference approach. We then link homeowners’ responses in these decision tasks with information from a detailed survey on their solar system specifications and history of energy usage.

Topics: Experimental Economics; Environmental Economics; Energy