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

Adebayo T., Eweade B. S., Özkan O.

Renewable Energy, vol.253, 2025 (SCI-Expanded, Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 253
  • Publication Date: 2025
  • Doi Number: 10.1016/j.renene.2025.123638
  • Journal Name: Renewable Energy
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Compendex, Environment Index, Geobase, Greenfile, Index Islamicus, INSPEC, Public Affairs Index
  • Keywords: Energy prices, Quantile-based techniques, Small-scale solar photovoltaic, Total energy CO2 emissions, United States
  • Open Archive Collection: Article
  • Azerbaijan State University of Economics (UNEC) Affiliated: No

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.