(64) State-level Solar energy polices and increases in state air quality

A wide variety of solar energy policies have been adopted and implemented at the state level in the United States. However, there has been no empirical assessment on the effect of these policies, in each of the fifty states,... [ view full abstract ]

A wide variety of solar energy policies have been adopted and implemented at the state level in the United States. However, there has been no empirical assessment on the effect of these policies, in each of the fifty states, on the EPA’s Air Quality Index (AQI). This study examines the effect of the Renewable Portfolio Standard (RPS), rebates, tax incentives, and net metering on state air quality, measured by the AQI. It employs two state fixed effect regressions to determine the effectiveness of these policies individually and then together as part of the renewable policy mix. The results illustrate that tax incentives provide a statistically significant and positive relationship with the state level AQI. In addition, environmental preferences of the constituents within each state have a significant on air quality. This research hopes to contribute to shifting the measure of effectiveness of renewable electricity policies to increasing air quality and not increasing energy generation.