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Heterogeneous Solar Capacity Benefits, Appropriability, and the Costs of Suboptimal Siting

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Listed:
  • Steven Sexton
  • A. Justin Kirkpatrick
  • Robert I. Harris
  • Nicholas Z. Muller

Abstract

This paper estimates that pollution damages avoidable by solar capacity vary considerably across zip codes in the United States and that they are uncorrelated with solar subsidy levels in each state. We estimate that $1 billion in avoided pollution damages would be gained annually from optimal siting of installed rooftop solar capacity. States are shown to appropriate a minority of these benefits from their solar investments because of interstate electricity and air pollution flows. This paper further measures the energy value of solar capacity across the United States and finds that rooftop solar does not relieve grid congestion.

Suggested Citation

  • Steven Sexton & A. Justin Kirkpatrick & Robert I. Harris & Nicholas Z. Muller, 2021. "Heterogeneous Solar Capacity Benefits, Appropriability, and the Costs of Suboptimal Siting," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(6), pages 1209-1244.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/714970
    DOI: 10.1086/714970
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    Cited by:

    1. Bryan Bollinger & Kenneth Gillingham & A. Justin Kirkpatrick & Steven Sexton, 2022. "Visibility and Peer Influence in Durable Good Adoption," Marketing Science, INFORMS, vol. 41(3), pages 453-476, May.
    2. Petersen, Claire & Reguant, Mar & Segura, Lola, 2024. "Measuring the impact of wind power and intermittency," Energy Economics, Elsevier, vol. 129(C).
    3. Abajian, Alexander & Pretnar, Nick, 2023. "Subsidies for Close Substitutes: Evidence from Residential Solar Systems," MPRA Paper 118171, University Library of Munich, Germany.
    4. Seung Min Kim & Kenneth Gillingham, 2024. "Air Pollution and Solar Energy: Evidence from Wildfires," CESifo Working Paper Series 10948, CESifo.

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