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Solar PV Technology Adoption in the United States: An Empirical Investigation of State Policy Effectiveness

Author

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  • Crago, Christine
  • Chernyakhovskiy, Ilya
Abstract
State policy incentives for solar power have grown significantly in the past several years. This paper uses county level panel data to investigate whether state policy incentives are effective in increasing residential solar PV capacity. Empirical findings show that tax incentives, rebates, solar-specific mandates, and loan financing programs are important drivers of residential PV adoption. These results suggest that policy incentives play a significant role in encouraging wider use of solar energy. Results also point to a significant positive relationship between hybrid vehicle sales and residential PV adoption, indicating the importance of pro-environmental preference as a predictor of solar PV demand.

Suggested Citation

  • Crago, Christine & Chernyakhovskiy, Ilya, 2014. "Solar PV Technology Adoption in the United States: An Empirical Investigation of State Policy Effectiveness," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169939, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169939
    DOI: 10.22004/ag.econ.169939
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    References listed on IDEAS

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    Cited by:

    1. De Groote, Olivier & Pepermans, Guido & Verboven, Frank, 2016. "Heterogeneity in the adoption of photovoltaic systems in Flanders," Energy Economics, Elsevier, vol. 59(C), pages 45-57.
    2. Müller, Jonas & Trutnevyte, Evelina, 2020. "Spatial projections of solar PV installations at subnational level: Accuracy testing of regression models," Applied Energy, Elsevier, vol. 265(C).
    3. Youhyun Lee & Bomi Kim & Heeju Hwang, 2020. "Which Institutional Conditions Lead to a Successful Local Energy Transition? Applying Fuzzy-Set Qualitative Comparative Analysis to Solar PV Cases in South Korea," Energies, MDPI, vol. 13(14), pages 1-19, July.
    4. Wiggins, Seth, 2016. "It’s All Local? How Sub-State Policies Affect Western US Residential Solar Adoption," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235667, Agricultural and Applied Economics Association.
    5. Alipour, M. & Salim, H. & Stewart, Rodney A. & Sahin, Oz, 2020. "Predictors, taxonomy of predictors, and correlations of predictors with the decision behaviour of residential solar photovoltaics adoption: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    6. Lundheim, Sigurd Hilmo & Vesely, Stepan & Nayum, Alim & Klöckner, Christian A., 2021. "From vague interest to strong intentions to install solar panels on private homes in the North – An analysis of psychological drivers," Renewable Energy, Elsevier, vol. 165(P1), pages 455-463.

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    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

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