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The heterogeneous preferences for solar energy policies among US households

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  • Heng, Yan
  • Lu, Chao-Lin
  • Yu, Luqing
  • Gao, Zhifeng

Abstract

Solar energy provides several significant advantages, such as reduced CO2 emissions, more energy supply diversification and regional/national energy independence. Due to the reduced installation cost and the rapid advances in solar energy technology, the installed capacity of solar power has been increasing over time in the United States. Nevertheless, solar energy capacity and policies differ significantly across the US states. Determining the preferences for solar energy policies is critical for future solar energy development. In this study, we used stated preference methods to elicit residents' preferences for solar energy and determine the impact of policies on consumers’ support of solar energy. Results show that US residents have a heterogeneous preferences for different types of solar energy policies. In general, financial support is more effective in promoting solar energy. Compared to most demographics, attitude toward climate change, barriers, and motives for solar energy adoption has a greater impact on preferences for solar energy policies. Moreover, our results confirm the necessity of government subsidies to promote solar energy. The findings could help facilitate the development of solar policy instruments that more effectively encourage the adoption of solar and other sustainable energies.

Suggested Citation

  • Heng, Yan & Lu, Chao-Lin & Yu, Luqing & Gao, Zhifeng, 2020. "The heterogeneous preferences for solar energy policies among US households," Energy Policy, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519307736
    DOI: 10.1016/j.enpol.2019.111187
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    More about this item

    Keywords

    Solar energy policy; Willingness-to-pay; Attitudes toward solar energy;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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