Spillover Effects of State-Level Solar Policy

Abstract

Innovation in renewable energy technology can help combat climate change and help shift the U.S. economy away from fossil fuels. Public policy has played an important role in the development of these technologies. Past work has focused on the direct effects of state policy on solar capacity, but the effects of state level policy on solar PV innovation are less well understood. This study examines the effects and spillover effects of state level policy on innovation in the 48 contiguous U.S. states. I find that renewable portfolio standards are tied to higher patenting counts in surrounding states while subsidy policies are tied to lower patenting counts in surrounding states.