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Examining the impact of small-scale solar photovoltaic adoption and energy prices on energy-related CO2 emissions in the United States

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  • Adebayo, Tomiwa Sunday
  • Eweade, Babatunde Sunday
  • Özkan, Oktay

Abstract

Previous studies have overlooked the impact of small-scale solar PV adoption and energy prices on carbon neutrality. This gap limits our understanding of how decentralized renewable energy sources and energy costs influence emissions. Bridging this gap is essential for formulating effective low-carbon policies. Therefore, this study addresses this gap by investigating the impact of small-scale solar PV and energy prices on total energy CO2 emissions (TECO2) in the United States. Employing a series of time-series techniques, including quantile-on-quantile Granger causality (QQGC) and quantile-on-quantile kernel regression least squares (QQKRLS) from January 1997 to December 2024, our analysis reveals several key findings. QQKRLS results show that small-scale solar PV consistently reduces TECO2 across all quantiles. Coal and crude oil prices also lower TECO2, enhancing ecological quality, while natural gas prices increase emissions. QQGC confirms all variables significantly predict TECO2 across quantiles. Our empirical findings underline the importance of integrating small-scale solar PV generation into the energy mix for enhancing environmental quality and fostering sustainable growth. To foster a low-carbon economy, policymakers should promote the adoption of small-scale solar PV through targeted subsidies and supportive regulation.

Suggested Citation

  • Adebayo, Tomiwa Sunday & Eweade, Babatunde Sunday & Özkan, Oktay, 2025. "Examining the impact of small-scale solar photovoltaic adoption and energy prices on energy-related CO2 emissions in the United States," Renewable Energy, Elsevier, vol. 253(C).
    • Handle: RePEc:eee:renene:v:253:y:2025:i:c:s096014812501300x
    DOI: 10.1016/j.renene.2025.123638
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    Cited by:

    1. Sebastian Sobczuk & Agata Jaroń & Mateusz Mazur & Anna Borucka, 2025. "Renewable Energy and CO 2 Emissions: Analysis of the Life Cycle and Impact on the Ecosystem in the Context of Energy Mix Changes," Energies, MDPI, vol. 18(13), pages 1-35, June.
    2. Wei Jiang & Xiangyu Liu & Jierui Zhang & Dianguang Liu & Hua Wei, 2025. "How Do Carbon Market and Fossil Energy Market Affect Each Other During the COVID-19, Russia–Ukraine War and Israeli–Palestinian Conflict?," Energies, MDPI, vol. 18(17), pages 1-22, September.

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